OECD annual inflation slows marginally to 0.8% in July 2016

OECD annual inflation slows marginally to 0.8% in July 2016

Annual inflation in the OECD area slowed to 0.8% in July 2016, compared with 0.9% in June. In the year to July, energy prices fell at a faster pace (-7.8%) than in the year to June 2016 (-7.1%), while food price inflation increased marginally to 0.1% in July, compared with 0.0% in June. Excluding food and energy, annual inflation was broadly stable at 1.8% in July 2016

Annual inflation decreased in Canada (to 1.3% in July, down from 1.5% in June) and the United States (to 0.8%, down from 1.0%). Inflation was stable in France (at 0.2%) and Japan (at -0.4%), while it increased slightly in Germany (to 0.4%, up from 0.3%), Italy (-0.1%, up from -0.4%) and the United Kingdom (0.6%, up from 0.5%).

Euro area annual inflation, as measured by the HICP, was 0.2% in July, up from 0.1% in June. Excluding food and energy, Euro area annual inflation was stable at 0.9%. Eurostat’s flash estimate for the Euro area in August 2016 also points to an overall annual inflation rate of 0.2% in the Euro area.

Annual inflation in the G20 area[1] slowed to 2.2%[2] in July, compared to 2.3% in June. Among non-OECD countries, annual inflation decreased in Saudi Arabia (to 3.8%, from 4.1%), the Russian Federation (to 7.2%, from 7.5%), Indonesia (to 3.2%, from 3.5%), Brazil (to 8.7%, from 8.8%) and China (to 1.8%, from 1.9%). Annual inflation was stable in South Africa (at 6.5%) for the fourth consecutive month, while it increased in India (to 6.5%, from 6.1%).



[1] The government of Argentina has declared a state of emergency in the national statistical system on 07 January 2016. As a consequence, Argentina’s Instituto Nacional de Estadística y Censos (INDEC) has been reviewing the procedures for data collection, processing, development and dissemination of certain official statistics under its responsibility. See the following link: *https://www.boletinoficial.gob.ar/pdf/linkQR/QlFlS1dmVmpOWXMrdTVReEh2ZkU0dz09. Gradually, revised statistics become available, such as the new GDP data released on 30 March and 29 June 2016. However, given the present situation in the area of price statistics, it is not yet possible to include Argentina in the calculation of the G20 aggregate, for the whole time series; see also remarks on G20 in the methodological notes.

[2] Data related to G20 area can be found at the following address: http://stats.oecd.org/Index.aspx?DataSetCode=G20_PRICES

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