Year-on-year inflation in the OECD area increased to 4.1% in June 2021, compared with 3.9 % in May. Inflation in the Euro Area was significantly lower than in the OECD area as a whole, and especially than in the United States. After three consecutive months of sharp increases, energy prices in the OECD area continued to rise at 17.4 % in June, but at a slower pace than in May (at 19.4 %) while food price inflation increased to 1.8 %, compared with 1.4 % in May. OECD annual inflation excluding food and energy also increased significantly to 3.2 % in June, compared with 2.9 % in May, the highest rate since March 2002.
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In June 2021, annual inflation increased in the United States (to 5.4 %, from 5.0 % in May), the United Kingdom (to 2.4 %, from 2.1 %), Japan (to 0.2 %, from minus 0.1 ) and France (to 1.5 %, from 1.4 %). Annual inflation slowed in Canada (to 3.1 %, from 3.6 %) and Germany (to 2.3 %, from 2.5 %) while it was stable in Italy at 1.3 %.
In the euro area, overall inflation (as measured by the HICP ) slightly decreased to 1.9 % in June 2021, compared with 2.0 % in May. Excluding food and energy, Euro Area inflation also decreased to 0.9 %, compared with 1.0 % in May. Eurostat’s flash estimate for the euro area in July points to a rise in annual inflation (to 2.2 %), reflecting in part the base effect from the temporary VAT decrease in Germany in July 2020, and a moderate slowdown in inflation excluding food and energy (to 0.7 %).
Annual inflation in the G20 area as a whole increased to 4.6 % in June 2021, compared with 4.4 % in May. Among non-OECD G20 economies, annual inflation increased in Argentina (to 50.2 %, from 48.8 %), the Russian Federation (to 6.5 %, from 6.0 %), Saudi Arabia (to 6.2 %, from 5.7 %), India (to 5.6 %, from 5.3 %) and Brazil (to 8.3 %, from 8.1 %). It decreased in South Africa (to 5.1%, from 5.2%), China (to 1.1 %, from 1.3 %) and Indonesia (to 1.3 %, from 1.7 %).
Due to measures put in place by governments to reduce the spread of the Coronavirus (Covid-19), many statistical agencies are facing unprecedented collection, compilation and methodological challenges to develop indicators across a number of domains. To address these challenges, the statistical community is developing conceptual and practical guidelines to help ensure the continued delivery of timely and reliable statistics. However, in some cases, there will inevitably be an impact on quality and, as such, the statistics included in this press release may be subject to larger than normal uncertainty.