Eurozone flash CPI to fall in October - HSBC

In the view of analysts at HSBC, the Eurozone headline inflation is expected to fall in the month of October.

Key Quotes:

“The headline Eurozone inflation rate came in at 1.5% y-o-y for the second month in a row in September. Core and services inflation, however, fell back by 0.1pp to 1.1% and 1.5% y-o-y respectively, as the spike in tourism-related services prices started to fade.

Energy inflation was relatively stable, despite the sharp monthly rise in pump prices (+1.8%) on the back of rising oil prices. We expect headline inflation to fall to 1.4% y-o-y in October and continue to fall later in the year due to the base effects of energy. Core inflation should remain at 1.1% y-o-y.”