Final German HICP inflation to confirm flash estimate at 0.2% yoy

Final German HICP is expected to remain unchanged from its flash estimate of 0.2% yoy in October, notably stronger than its September reading of -0.2% yoy. The national index also jumped from 0.0% yoy to 0.3% yoy in October. All the components made positive contributions to the headline reading. The energy component, on account of a lower drop in gasoline prices, added 7bp to the headline figure - while food prices continued to increase, adding 5bp. In core components, the prices of non-energy goods and services increased, adding 12bp and 5bp respectively. 

"Looking ahead, we expect German HICP inflation to average 0.2% in 2015 and 1.2% in 2016, while the core metric should average 1.1% in 2015 and 1.3% in 2016", notes Societe Generale.