The Euro zone HICP inflation data is expected to be unchanged for the month of December. The previous reading came at 0.2% yoy due to improved energy component and lower food prices. The core component remained stable at 0.9% yoy, with non-energy industrial goods prices remaining constant at 0.5% yoy and prices paid for services dipping marginally from 1.2% yoy in November to 1.1% yoy in December, cutting 4bp from the headline figure.
According to Societe Generale, the euro area HICP inflation to average 0.6% in 2016 and 1.6% in 2017, while the core metric should average 1.1% in 2016 and 1.3% in 2017.
