Germany's Federal Statistical Office (Destatis) reported on Thursday the country’s consumer price index (CPI) is expected to edge up 0.1 percent m-o-m in October after dropping 0.2 percent m-o-m in the previous month.

On the y-o-y basis, Germany’s CPI is seen to fall 0.2 this month, the same pace as in September. That remained the biggest decline since January 2015, influenced, among others, by the value-added tax reduction effective as of 1 July 2020. 

Economists had predicted inflation would be unchanged m-o-m but decrease 0.3 percent y-o-y in September.

According to the report, food price growth accelerated to 1.6 percent y-o-y in October from 0.6 percent y-o-y in September, while energy prices fell 6.8 percent y-o-y after a 7.1 percent y-o-y drop in the previous month. Services costs rose 1.0 percent y-o-y in October, the same pace as in September.

Meanwhile, the harmonized index of consumer prices for Germany (HICP), which is calculated for European purposes, is expected to be flat m-o-m and to fall 0.5 percent y-o-y.