Final German HICP inflation to confirm flash estimate at 0.1% yoy

Final German HICP is expected to remain unchanged from its flash estimate of 0.1% yoy in August and also unchanged from its July reading. The national index also remained unchanged at 0.2% yoy. In terms of the details, a drag from the drop in gasoline prices was expected, and that was indeed what seen in the data, with the energy component cutting 15 bp from the headline reading, says Societe Generale. 

The food component added 4 bp to the headline. Among the core components, non-energy goods added 2 bp to the headline, while the prices paid for services added 5 bp to the headline. The German HICP inflation is likely to average 0.3% in 2015 and 1.3% in 2016, while the core metric should average 1.1% in 2015 and 1.3% in 2016, estimates Societe Generale.