Higher energy prices push OECD annual inflation to 2.3 % in January

Annual inflation in the OECD area picked up to 2.3 % in January 2020, compared with 2.1 % in December 2019, as energy prices rose by 4.7 % in January compared with 2.2 % in December. Food price inflation, on the other hand, slowed slightly to 1.6 %, from 1.7 % in December. Excluding food and energy, OECD inflation remained stable – for the third consecutive month – at 2.1 %.

In January 2020, annual inflation increased in the United Kingdom (to 1.8 %, from 1.4 % in December 2019), the United States (to 2.5 %, from 2.3 %), Canada (to 2.4 %, from 2.2 %), and Germany (to 1.7 %, from 1.5 %). It was stable in France (at 1.5 %) and Italy (at 0.5 %), while it decreased slightly in Japan (to 0.7 %, from 0.8 %).

Annual inflation in the Euro area, as measured by the HICP , increased to 1.4 % in January 2020, compared with 1.3 % in December 2019. Excluding food and energy, euro area inflation decreased to 1.1 %, compared with 1.3 % in December. Eurostat’s flash estimate for February 2020 points to annual inflation slowing to 1.2%, with inflation excluding food and energy picking up to 1.2 %.

Annual inflation in the G20  area was stable at 4.0 % in January. Among non-OECD G20 economies, annual inflation picked up in China (to 5.4 %, from 4.5 %), South Africa (to 4.4 %, from 4.0 %) and Saudi Arabia (to 0.3 %, from 0.2 %). It decreased, but remained very high in Argentina (to 52.9 %, from 53.8 %). Inflation also slowed in India (to 7.5 %, from 9.6 %), Brazil (to 4.2 %, from 4.3 %), and the Russian Federation (to 2.4 %, from 3.0 %). It was stable in Indonesia (at 2.7 %).

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