French inflation to remain stable at 0.1% yoy in October

French HICP inflation is expected to remain unchanged at 0.1% yoy in October. The energy component is expected to remain weak in yoy terms but on a mom basis it is expected to show a slight improvement led by a lower decline in gasoline prices. 

Regarding the other components, food is expected to make a slight positive contribution to the headline. The core is also expected to remain stable at 0.7% yoy in October, led by the marginal gain in prices of non-energy industrial goods and the stable prices of services. 

"Looking ahead, we expect French HICP inflation to average 0.2% in 2015 and 1.1% in 2016, while the core metric should average 0.7% in 2015 and 1.1% in 2016", notes Societe Generale.