Subdued Euro area inflation going forward

Economic theory suggests a strong pass-through between ULC and core prices. 

Therefore, given the recent developments in ULC and the lags between ULC and core inflation, core HICP inflation is set to grow by 1.2% in 2016, slightly above the current rate (0.9% yoy in September). 

"Beyond 2016, the core inflation is expected to increase slightly but to remain slightly below 1.5% until 2019", says Societe Generale.