Flash October Italian HICP consumer prices set to soften slightly

Italian HICP inflation is likely to dip for a second consecutive month, to 0.1% yoy in October from 0.2% yoy in September. As in other euro area economies, gasoline prices have shown a slight improvement while remaining weak, but food prices are expected to continue to increase. 

Italian core inflation is likely to contribute positively to the headline inflation, led by higher services and non-energy goods inflation.

"Looking ahead, Italian HICP inflation is expected to average 0.2% in 2015 and 1.1% yoy in 2016. The core component should average 0.8% in 2015 and 1.2% in 2016", says Societe Generale.