Flash German October HICP inflation set to print flat

The flash German HICP is likely to recover slightly to 0.0% yoy in October after dipping into negative territory in September (-0.2% yoy). 

This small recovery is seen in the headline component as coming on the back of a noticeable improvement in energy prices (which are still quite weak), underpinned by steady food prices. The core component is likely to remain stable at 1.1% yoy.

"German HICP inflation is expected 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", says Societe Generale.