Higher energy prices push OECD inflation up to 2.1 % in December 2019

Annual inflation in the OECD area picked up to 2.1 % in December, compared with 1.8 % in November 2019, as energy prices rose by 2.2 % following a contraction of (minus) 1.0 % in November. Food price inflation as well as annual inflation excluding food and energy were stable in December at 1.6 % and 2.1 % respectively.

In December 2019, annual inflation increased in France (to 1.5 %, from 1.0 % in November), Germany (to 1.5 %, from 1.1 %), Japan (to 0.8 %, from 0.5 %), Italy (to 0.5 %, from 0.2 %) and the United States (to 2.3 %, from 2.1 %). It was stable in Canada (at 2.2 %), while it decreased slightly in the United Kingdom (to 1.4 %, from 1.5 %).

Annual inflation in the Euro area, as measured by the HICP[1], increased to 1.3 % in December, compared with 1.0 % in November. Excluding food and energy, euro area inflation was stable at 1.3 % in December. Eurostat’s flash estimate for January 2020 points to annual inflation picking up to 1.4 %, with inflation excluding food and energy slowing to 1.1 %.

Annual inflation in the G20[2] area increased to 4.0 % in December, compared with 3.7 % in November. Among non-OECD G20 economies, annual inflation picked up in Argentina (to 53.8 %, from 52.1 %), India (to 9.6 %, from 8.6 %), Brazil (to 4.3 %, from 3.5 %), South Africa (to 4.0 %, from 3.6 %) and Saudi Arabia (to 0.2 %, from minus 0.1 %; the first positive rate since December 2018). Annual inflation decreased in the Russian Federation (to 3.0 %, from 3.5 %) and Indonesia (to 2.7 %, from 3.0 %), and was stable in China (at 4.5 %).

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