OECD annual inflation slows to 0.8 % in March 2016
Annual inflation in the OECD area slowed to 0.8 % in March 2016, compared with 1.0 % in February 2016. This slowdown was mainly driven by energy prices which declined by 9.5 %, compared with a decline of 8.9 % in the year to February. Food price inflation also decreased, to 0.7 %, compared with 0.9 % in February. Excluding food and energy, the OECD annual inflation rate remained stable at 1.9 % for the fourth consecutive month
In the year to March 2016, the picture across major OECD economies was mixed. Annual inflation decreased markedly in Japan (to -0.1 %, down from 0.3 %) and slightly in Canada (to 1.3%, down from 1.4%) and the United States (to 0.9 %, down from 1.0 %). On the other hand, annual inflation increased in Germany (to 0.3 %, up from 0.0 %) and the United Kingdom (to 0.5 %, up from 0.3 %) while consumer prices declined marginally, less than in previous month, in France (to -0.1 %, up from -0.2%) and Italy (to -0.2 %, up from -0.3 %).
Euro area annual inflation, as measured by the HICP, was 0.0 % in March, compared with -0.2 % in February. Excluding food and energy, euro area annual inflation picked up to 1.0 %. Eurostat’s flash estimate for April 2016 points to an overall annual inflation rate of -0.2 % in the Euro area.
Annual inflation also slowed in the G20 area to 2.3 % in March, compared with 2.4 % in February. Among non-OECD countries, annual inflation decreased in the Russian Federation (to 7.3 %), Brazil (to 9.4%) and South Africa (to 6.6 %). Annual inflation increased marginally in Saudi Arabia (to 4.3 %) and remained stable in China (at 2.3 %), Indonesia (at 4.4 %) and India (at 5.5 %).