Flash June Euro area HICP inflation to improve

The ongoing recovery in consumer prices is expected to continue unabated. The energy component should benefit from the higher gasoline prices recorded over the month of June while the food component should also see a tepid rise behind higher fresh food prices. 

For the core components, an unchanged reading is seen at 0.9% yoy.The prices paid for services component are expected to waver a bit after the big jump recorded in May. The prices paid for goods should remain stable.

"Looking ahead, the flash HICP inflation should print one tick higher in June at 0.4 yoy. Euro area HICP inflation is expected to average 0.3% in 2015 and 1.5% in 2016, while the core metric should remain stable at 0.9% in 2015 and 1.1% in 2016", says Societe Generale.