OECD annual inflation edges up to 0.9% in August 2016
Annual inflation in the OECD area rose to 0.9 % in August 2016, compared with 0.8 % in July. In the year to August, energy prices fell at a slower pace (-6.7 %) than in the year to July 2016 (-7.8 %), while food prices fell by -0.2 % in August, compared with a rise of 0.1 % in July. Excluding food and energy, annual inflation was stable at 1.8 % in August 2016.
Annual inflation increased in the United States (to 1.1 % in August, up from 0.8 % in July) while it remained stable in France (at 0.2 % – for the third consecutive month), Germany (0.4 %), Italy (-0.1 %) and the United Kingdom (0.6 %). Annual inflation decreased slightly in Canada (to 1.1 %, down from 1.3 %) and Japan (to -0.5 %, down from -0.4 %).
Euro Area annual inflation, as measured by the HICP, was stable at 0.2 % in August 2016. Excluding food and energy, Euro area annual inflation decreased slightly to 0.8 %. However, Eurostat’s flash estimate for September 2016 points to a pick-up in overall annual inflation to 0.4 % in the Euro Area.
Annual inflation in the G20 area decreased marginally to 2.1 % in August, compared to 2.2 % in July. Annual inflation fell in most G20 emerging economies: in India (to 5.3 %, from 6.5 %), China (to 1.3 %, from 1.8 %), Saudi Arabia (to 3.3 %, from 3.8 %), Indonesia (to 2.8 %, from 3.2 %), the Russian Federation (to 6.9 %, from 7.2 %) and South Africa (to 6.3 %, from 6.5 %). The only exception was Brazil, where annual inflation increased (to 9.0 %, from 8.7 %).