Energy prices are set to sharply fall 1.6 percent in October, compared to 0.2 percent in September; while food prices should advance 1.8 percent, slower than 2.1 percent in the previous month, on the back of a drop in fresh food cost (-0.1 percent vs 2.0 percent). Meanwhile, tobacco prices are expected to advanced faster (8.8 percent vs 8.7 percent) while manufactured products cost is likely to drop at a softer pace (-0.5 percent vs -0.7 percent).
Services prices, which account for almost half of the CPI, are expected to grow 1.2 percent, the same as in September.
On a monthly basis, consumer prices should fall 0.1 percent (vs -0.3 percent in September). Energy prices should be stable, the rise in petroleum product prices being offset by an accentuated decrease in gas prices. Services cost should drop less after a sharp contraction in the previous month. Finally, food inflation should be steady while manufactured goods prices are set to slow down.
The harmonised index of consumer prices is expected to rise 0.9 percent from the previous year (vs 1.1 percent in September); and fall 0.1 percent month-over-month (vs -0.4 percent in September).