OECD annual inflation down to 2.2 % in October 2017, as energy price inflation slows

Annual inflation in the OECD area slowed to 2.2 % in October 2017, compared with 2.3 % in September 2017. This slight decrease in the annual rate of inflation was driven by energy and food prices. Energy price inflation slowed to 5.8 % in October, compared with 7.7 % in September while food price inflation slowed to 1.8 % from 1.9 % in September. Excluding food and energy, inflation increased slightly to 1.9 %, compared with 1.8 % in September 2017

Annual inflation decreased in Japan (to 0.2 % in October, from 0.7 % in September), Canada (to 1.4 %, from 1.6 %), Germany (to 1.6 %, from 1.8 %), the United States (to 2.0 %, from 2.2 %) and Italy (to 1.0 %, from 1.1 %). It was stable in the United Kingdom (at 3.0 %) and increased slightly in France (to 1.1 %, from 1.0 %).

Annual inflation in the Euro area, as measured by the HICP, decreased to 1.4 % in October, compared with 1.5 % in September. Excluding food and energy, annual inflation also decreased, to 0.9 % in October, compared with 1.1 % in September. Eurostat’s flash estimate for November 2017 points to overall inflation returning to 1.5 % and inflation excluding food and energy, stabilizing at 0.9 %.

Annual inflation in the G20 area slowed to 2.3 % in October, compared with 2.4 % in September. Among G20 emerging economies, annual inflation decreased in the Russian Federation (to 2.7 %, from 3.3 %), South Africa (to 4.6 %, from 4.9 %), Indonesia (to 3.6 %, from 3.7 %) and Saudi Arabia (to -0.2 %, from -0.1 %). Annual inflation picked up in India (to 3.2 %, from 2.9 %), China (to 1.9 %, from 1.6 %) and Brazil (to 2.7 %, from 2.5 %).

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