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

In terms of the details of german data, a drag is expected from the drop in gasoline prices, and that was indeed what was seen in the data, with the energy component cutting 15 bp from the headline reading. The food component added 4 bp to the headline.

"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", says Societe Generale. 

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.

"Looking ahead, German HICP inflation is expected 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", forecasts Societe Generale.