Germany’s flash HICP inflation likely remained stable in March

Germany’s flash HICP inflation is likely to be stable in March 2015 due to weaker energy component on an annual basis, according to Societe Generale. The energy component is expected to rebound on a month-on-month basis on back of slightly stabilized energy prices. Food prices are likely to be stable, added Societe Generale.

“German flash HICP is expected to print stable at -0.2% yoy in March”, says Societe Generale.

According to the bank, core component should rebound to 0.9% y/y in March after weakening in February as prices paid for services will rise due t o Easter holidays.

“We expect German HICP inflation to average 0.5% in 2016 and 1.8% in 2017, while the core metric should average 1.2% in 2016 and 1.4% in 2017”, says Societe Generale.