We expect October Eurozone ‘flash’ inflation to come out at 0.4% YoY on Friday, with 0.5% YoY not ruled out. This very modest increase following September’s record-low print (0.3% YoY) would mainly come from the food sub-component, which has been recovering gradually since June mostly for base-effect reasons. Unsurprisingly, the energy component is expected to decline again, but a positive base effect (energy MoM contribution had been already pretty negative in October 2013) probably limited the drop. We see core inflation at 0.75% YoY (rounded to 0.8% by Eurostat), so stable if compared to September. Bear in mind ... (full story)