OECD annual inflation rises to 6% in December

By Tuba Ongun

Annual consumer inflation in the Organization for Economic Cooperation and Development (OECD) area rose to 6% in December, following three consecutive months of declines, according to data released on Wednesday.

The figure was up from over two-year low of 5.8% in November, the Paris-based organization said in a statement.

Inflation went up in some 14 OECD countries, while inflation eased in 21 countries and was stable in the remaining 3 countries.

Core inflation, excluding food and energy, was broadly unchanged in the OECD, at 6.7% in December.

While the decline of food inflation in the OECD slowed compared to recent months, standing at 6.7% in December, the energy inflation remained negative for the eighth consecutive month.

Annual inflation in the Group of Seven (G-7) was broadly stable at 3.2% in December, and it rose to 6.5% in the G-20.

On a monthly basis, consumer prices rose 0.2% in December, following a 0.1% hike in November.

In 2023, the OECD inflation dropped to 6.9% on average from 9.5% in 2022, led by energy deflation (minus 0.9% annual average in 2023 compared to 29.6% in 2022).

The core inflation, on the other hand, was higher than a year ago, at 7.0% in 2023 versus 6.7% in 2022, reaching its highest annual average rate since 1990.