OECD annual inflation picks up to 3.1% in October 2018

Annual inflation in the OECD area picked up to 3.1 %  in October 2018, compared with 2.9 % in September, as energy prices increased by 10.3 % in October, compared with 8.2 % in September. Food price inflation on the other hand slowed to 2.1 %, from 2.3 %. Excluding food and energy, OECD inflation was stable at 2.3 % in October.

Although OECD inflation is now at its highest rate since October 2011, this, in large part, reflects on-going high inflation in Turkey (25.2 % in October). Excluding Turkey, annual inflation in the OECD area marginally increased to 2.3 % in October, compared with 2.2 % in September.

In the year to October, among G7 countries, annual inflation increased moderately in Canada (to 2.4 %, from 2.2 %), Germany (to 2.5, from 2.3 %), Italy (to 1.6 %, from 1.4 %), Japan (to 1.4 %, from 1.2 %) and the United States (to 2.5 %, from 2.3 %) and was stable (at 2.2 %) in France and the United Kingdom.

Annual inflation in the Euro area, as measured by the HICP, increased to 2.2 % in October, compared with 2.1 % in September. Excluding food and energy, euro area inflation also picked up to 1.1 % in October, compared with 0.9 % in September. However, Eurostat’s flash estimate for November points to a slowdown in overall inflation as well as in inflation excluding food and energy, to 2.0 % and 1.0 %, respectively.

Annual inflation in the G20 area[3] increased to 3.8 % in October 2018, compared with 3.6 % in September. Among the G20 emerging economies, annual inflation picked up markedly in Argentina (to 45.9 %, from 40.5 %) and more moderately in Indonesia (to 3.2 %, from 2.9 %), Saudi Arabia (to 2.4 %, from 2.1 %), South Africa (to 5.0 %, from 4.8 %), Brazil (to 4.6 %, from 4.5 %) and the Russian Federation (to 3.5 %, from 3.4 %). It was stable in China (at 2.5 %) and decreased in India (to 5.2 %, from 5.6 %).

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