OECD annual inflation slows to 2.7 % in November 2018 due mainly to easing energy price rises

Annual inflation in the OECD area slowed to 2.7 % in November 2018, compared with 3.1 % in October. Energy price inflation decreased to 6.8 % in November, compared with 10.4% in October. Food price inflation also slowed, to 1.9 %, from 2.1 %. Excluding food and energy, OECD inflation slowed marginally to 2.2 %, compared with 2.3 % in October.

Excluding Turkey where prices rose 21.6 % year-on-year, annual inflation in the OECD area decreased to 2.0% in November, compared with 2.3 % in October.

In the year to November, among G7 countries, annual inflation decreased in Canada (to 1.7 %, from 2.4 %), Japan (to 0.8 %, from 1.4 %), France (to 1.9 %, from 2.2 %), the United States (to 2.2 %, from 2.5 %), and Germany (to 2.3 %, from 2.5 %). It was stable in Italy (at 1.6 %) and the United Kingdom (at 2.2 % – for the third consecutive month).

Annual inflation in the Euro area, as measured by the HICP, decreased to 1.9 % in November, compared with 2.2 % in October. Excluding food and energy, euro area inflation slowed to 1.0 % in November, from 1.1 % in October. Eurostat’s flash estimate for December points to a further slowdown in overall inflation to 1.6 %, with inflation excluding food and energy remaining at 1.0 %.

Annual inflation in the G20 area decreased to 3.4 % in November 2018, compared with 3.8 % in October. Among the G20 emerging economies, annual inflation decreased in Brazil (to 4.0%, from 4.6 %), India (to 4.9 %, from 5.2 %) and China (to 2.2 %, from 2.5 %), and was stable in Indonesia (at 3.2 %). On the other hand, inflation picked up in Argentina (to 48.5 %, from 45.9 %), the Russian Federation (to 3.8 %, from 3.5 %), Saudi Arabia (to 2.8 %, from 2.4 %) and South Africa (to 5.1 %, from 5.0 %).  

From now on OECD publishes contributions of different items to annual CPI inflation (see Table 3)

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