German final August HICP inflation likely confirmed flash estimate of 0.3 pct y/y

Germany’s final HICP inflation is expected to have remained the same as the flash estimate in August. According to a Societe Generale research report, final HICP inflation is likely to confirm the flash reading of 0.3 percent year-on-year in August.

All major CPI components, except for energy, softened in the month on year-on-year basis. Energy, as stated above, witnessed a smaller annual drop of 5.9 percent, as compared with a decline of 7 percent year-on-year in July.

Meanwhile, food prices weakened two ticks in August after recovering sharply in July. According to German official statistics office Destatis, the core CPI inflation weakened one tick to 1.2 percent year-on-year, as both non-energy industrial goods and services inflation weakened in August.

Prices of non-energy industrial goods are expected to have weakened by two ticks to 0.9 percent on an annual basis. In the meantime, services inflation weakened by one tick to 1.3 percent year-on-year.