Year-on-year, energy prices are set to advance further to 13.8 percent in October from 12.8 percent in September and services inflation should increase to 1.2 percent from 1.1 percent in the prior month. On the other hand, food inflation is expected to slow to 2.2 percent, compared with 2.8 percent in September, mainly due to lower prices of fresh food (6.9 percent from 11.2 percent). Also, prices are set to ease slightly for tobacco (16.7 percent from 16.8 percent) and cost should decline more for manufactured products (-0.4 percent from -0.2 percent).
On a monthly basis, consumer prices are expected to rise by 0.1 percent in October, recovering from a 0.2 percent fall in September and matching market consensus. The increase should mainly be due to higher energy prices. Meanwhile, inflation should be steady for manufactured products while food prices are set to edge down, due to lower fresh food prices. Services prices should drop markedly less than in the previous month.
The harmonised index of consumer prices is expected to rise by 2.5 percent from the previous year, the same as in the previous month; and by 0.1 percent month-over-month (vs -0.2 percent in September).