OECD annual inflation picks up to 1.4 % in October 2016, driven by energy prices
Annual inflation in the OECD area increased to 1.4 % in October 2016, compared with 1.2 % in September. This increase in the annual rate of inflation was mainly driven by energy prices which fell at a slower pace (-0.6 % in October, compared with -2.8 % in September). Food prices decreased by -0.3 % in October (compared with -0.4 % in September). Excluding food and energy, annual inflation decreased slightly to 1.7 % in October, compared with 1.8 % in September
Annual inflation increased markedly in Japan (to 0.1 % in October, up from -0.5 % in September), and marginally in Canada (to 1.5 %, up from 1.3 %), the United States (to 1.6 %, up from 1.5 %) and Germany (to 0.8 %, up from 0.7 %). It was stable in France (at 0.4 %) and it decreased in Italy (to -0.2 %, down from 0.1 %) and the United Kingdom (to 0.9 %, down from 1.0 %).
Euro area annual inflation, as measured by the HICP, rose to 0.5 % in October, compared with 0.4 % in September 2016. Excluding food and energy, Euro area annual inflation was stable at 0.8%. Eurostat’s flash estimate for November 2016 points to a pick-up in overall annual inflation to 0.6% in the Euro area.
Annual inflation in the G20 area increased slightly to 2.3 % in October, compared with 2.2 % in September. Among G20 emerging economies, annual inflation increased in China (to 2.1 %, up from 1.9 %), Indonesia (to 3.3 %, up from 3.1 %) and South Africa (to 6.7 %, up from 6.5 %). On the other hand, it decreased in India (to 3.3 %, down from 4.1 %), Brazil (to 7.9 %, down from 8.5 %), the Russian Federation (to 6.1 %, down from 6.4 %) and Saudi Arabia (to 2.6 %, down from 3.0 %).