German October HICP inflation likely to remain stable

German's HICP inflation data is due this week. The inflation rate in the economy is expected to remain stable. The final German HICP is likely to remain stable from its flash estimate of 0.2% yoy in October, but stronger than its September figure, which was -0.2% yoy.

The national index also increased to 0.3% yoy in October from 0.0% yoy in previous month. All the components of headline CPI contributed positively to this figure. 

A disaggregate level figure shows, energy component contributed 7bp to the headline figure and food prices added 5bp. Likewise, in core components, non-energy goods and services also shown positive sign, and contributed 12bp and 5bp respectively.

"Looking ahead, we expect German HICP inflation 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", estimates Societe Generale.