Year-on-year inflation in the OECD area increased to 4.2 % in July 2021, compared with 4.0 % in June. Inflation in the Euro Area (at 2.2 % in July) remained significantly lower than in the OECD area as a whole, and especially than in the United States (at 5.4 %).
Energy prices in the OECD area rose at a faster pace in July than in June. Their inflation reached 17.4 % in July, compared with 16.9 % in June. Food price inflation also increased sharply to 3.1 %, compared with 1.9 % in June. OECD annual inflation excluding food and energy was stable at 3.1 % in July.
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In July 2021, annual inflation increased sharply in Germany (to 3.8 %, from 2.3 % in June, reflecting in part the base effect from the temporary VAT decrease in Germany in July 2020), Canada (to 3.7 %, from 3.1 %) and Italy (to 1.9 %, from 1.3 %). On the other hand, annual inflation was stable at 5.4 % in the United States after six consecutive months of increases while it slowed in the United Kingdom (to 2.1 %, from 2.4 %) and France (to 1.2 %, from 1.5 %). The new Japanese 2020-base CPI shows continued overall price deflation in Japan in July (minus 0.3 %) but at a slower pace than in June (minus 0.5 %).
In the Euro Area, overall inflation (as measured by the HICP ) increased to 2.2 % in July 2021, compared with 1.9 % in June. However, excluding food and energy, euro area inflation decreased to 0.7 %, compared with 0.9 % in June. Eurostat’s flash estimate for the Euro Area in August points to a sharp increase in overall inflation as well as in inflation excluding food and energy, to 3.0 % and 1.6 %, respectively.
Annual inflation in the G20 area as a whole increased to 4.6 % in July 2021, compared with 4.3 % in June. Among non-OECD G20 economies, annual inflation increased in Argentina (to 51.8 %, from 50.2 %), Brazil (to 9.0 %, from 8.3 %), and Indonesia (to 1.5 %, from 1.3 %). On the other hand, annual inflation was stable in the Russian Federation at 6.5 %, while it decreased sharply in Saudi Arabia (to 0.4 %, from 6.2 %, reflecting in part the base effect from the VAT increase in Saudi Arabia in July 2020), and moderately in India (to 5.3 %, from 5.6 %), South Africa (to 4.7 %, from 5.1 %) and China (to 1.0 %, from 1.1 %).
>> Methodological information:
OECD Consumer price index – Methodological Notes for OECD CPI News Release
OECD Contributions to annual inflation – OECD calculation of contributions to overall annual inflation
>> Access Data:
OECD countries – Contributions to annual CPI inflation by COICOP Division, current month, OECD countries – Contributions to annual CPI inflation, selected components, historical series and G7 & non-OECD countries, zone aggregates, inflations rates, historical series graphs