Germany’s September final HICP, CPI inflation likely accelerated on energy prices

Germany’s final HICP and CPI inflation is expected to have remained the same as flash readings in September. According to a Societe Generale research note, the final HICP and CPI prints are likely to have confirmed the flash estimate of 0.5 percent year-on-year and 0.7 percent year-on-year, respectively.

Inflation was mainly driven higher by energy in September on account of base effects, showed the preliminary inflation report. Apart from energy, non-energy industrial goods appear to have rebounded slightly in September, according to the information available in preliminary data.

On the other hand, prices of food fell markedly to 0.4 percent year-on-year in September from 0.9 percent year-on-year in August. In the meantime, services stayed stable in spite of a slight rebound in rental prices, noted Societe Generale.