September Euro area HICP inflation set to slow to 0.0% yoy

Flash September Euro area HICP inflation is expected to slowdown. The main culprits are lower fuel prices as a result of persistently weak Brent prices in euro terms.

Regarding the other components, food price is expected to make a small positive contribution to the headline, while the core is expected to remain stable at 0.9% yoy. 

"Among the core components, we expects some pull back in price inflation of non-energy industrial goods (down from 0.4% yoy to 0.2% yoy) and further increase in services price inflation (from 1.2% yoy to 1.3%). Looking ahead, we expect euro area HICP inflation to average 0.2% in 2015 and 1.1% in 2016, while the core metric should average 0.8% in 2015 and 1.2% in 2016", added Societe Generale.