Euro area's core inflation shows muted signs of quickening

Euro area's core inflation has quickened in 2015 from 0.6% in January to 0.9% in August, after slowing down in 2014 from an average of 1.1% in 2013 to 0.8%. 

"Core inflation is expected to gradually increase, averaging 1.2% in 2016. Services inflation increased gradually between January 2015 and August 2015 from 1.0% yoy to 1.2% yoy", says Societe Generale. 

On the other hand, non-energy industrial goods inflation, which continues to remain well below that of services, recorded a more pronounced rebound from -0.1% in January to 0.4% in August. 

"Looking ahead at 2016, non-energy goods inflation is expected to grow at a faster, although quite moderate rate", added Societe Generale.