Flash German HICP inflation to print a tick low

Flash German HICP inflation to print a tick low

In Germany, the energy component again is expected to provide the biggest pull for the headline number as gasoline prices continued to rise (1.1% mom) according to the European Commission weekly oil price bulletin data.

The energy and food components rose in May. On the core components, non-energy non-food goods price inflation was unchanged, while services prices quickened.

"The prices paid for services are expected to fall back a bit in June after their big jump in May which should also keep a lid on the headline figure. June Flash German CPI is expected to print a tick lower than in May at 0.6% yoy", says Societe Generale.

"Looking ahead, German HICP inflation is expected to average 0.5% in 2015 and 1.7% in 2016, while the core metric should remain stable at 1.2% in 2015 and 1.4% in 2016", added Societe Generale.