Flash June Euro area HICP inflation to print a tick low

The ongoing recovery in Euro area consumer prices is expected to falter a bit in June. The energy component should benefit from the higher gasoline prices recorded over the month of June (1.1% mom) while the food component should also see a tepid rise behind higher fresh food prices. 

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.

"The flash HICP inflation should print one tick lower in June at 0.2% yoy. For the core components, a slight decrease is seen to 0.8% yoy", says Societe Generale.

"Looking ahead, 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", added Societe Generale.