OECD annual inflation at nearly 3-year low

By Tuba Ongun

Annual consumer inflation in the Organization for Economic Cooperation and Development (OECD) area slowed to 5.38% in July, marking its lowest level since October 2021, according to data released on Wednesday.

Headline inflation decreased from 5.64% in June and 5.90% in May, data from the Paris-based organization showed.

Inflation increased in 17 of 38 OECD countries, declined in 11, and was stable or broadly stable in 10.

Excluding Türkiye, whose inflation rate was above 60%, OECD inflation is estimated to have been broadly stable in July, read the statement.

The cost of energy increased at the fastest pace in 17 months by 3.29% year-on-year in July, accelerated from a 2.32% hike in June.

Having slowed nearly for two years, the annual hike in food prices hit its lowest level since September 2021 at 4.32% in July.

OECD core inflation, stripping out food and energy, dropped to 5.49% this July, the lowest since January 2022.

In the G7, annual headline inflation was stable at 2.7% in the month, with the largest hikes in Italy and the UK.

In the G20, consumer prices climbed 6.7% at an annualized pace in July, cooling from 7.1% in June.