Preliminary consumer prices for Germany came in even weaker than expectation. The HICP inflation rate of German fell to -0.2% in September, from +0.1% previously, weaker than consensus (0.0%) projections.
"Euro area "flash" HICP inflation is expected to decline to -0.1% in September (to be released tomorrow), from +0.1% y/y in August. Underpinning our forecast is the expectation that Italian HICP inflation (also to be released tomorrow) has declined to +0.3% from +0.4% in August. We continue to expect euro area core inflation to have remained unchanged at +0.9% y/y in September", says Barclays.