Euro area HICP inflation likely to post at 0.2% yoy in July

The Euro area's HICP inflation data is due today. The economy's consumer prices posted 0.2% yoy growth in June expected to increase in July. Societe Generale estimates the economy likely to experience 0.3% growth in consumer prices. 

The energy component is likely to provide a muted push led by stable gasoline prices recorded in the month of July (0.7% mom) but weaker Brent crude prices continue to keep energy component subdued. The food component should also continue to increase albeit at a slightly slower pace compared to June. The core component due to seasonal variations should also register a tepid increase from 0.8% yoy to 0.9% yoy. The bank expects the prices paid for the services component to soften and prices paid for goods to increase noticeably due to seasonal variations. 

According to Societe Generale, the euro area HICP inflation to average 0.3% in 2015 and 1.5% in 2016, while the core metric should remain stable at 0.8% in 2015 and 1.1% in 2016.