15 February 2019

ANNUAL INFLATION IN THE OECD AREA SLOWED TO 2.4% IN DECEMBER 2018

Annual inflation in the OECD area slowed to 2.4% in December 2018, compared with 2.7% in November. Energy price inflation decreased markedly to 3.6% in December, compared with 6.7% in November, while food price inflation slowed marginally, to 1.8%, from 1.9%. Excluding food and energy, OECD inflation also slowed to 2.2%, compared with 2.3% in November.

Annual inflation decreased in all G7 countries, in December, except Canada, where it picked up to 2.0% (from 1.7%). Annual inflation decreased in Germany (to 1.7%, from 2.3%), Italy (to 1.1%, from 1.6%), Japan (to 0.3%, from 0.8%), France (to 1.6%, from 1.9%), the United States (to 1.9%, from 2.2%) and the United Kingdom (to 2.0%, from 2.2%). Energy and food products, combined, contributed significantly to inflation in many OECD countries in December but had a negligible impact in Canada, Japan and the United States (see Table 3 – contributions to annual inflation).
Annual inflation in the Euro area, as measured by the HICP, decreased to 1.6% in December, compared with 1.9% in November. Excluding food and energy, euro area inflation was stable at 1.0% in December. Eurostat’s flash estimate for inflation in January 2019 is 1.4%, and inflation excluding food and energy, 1.1%. Annual inflation in the G20 area decreased to 3.2% in December 2018, compared with 3.4% in November.
Among the G20 emerging economies, annual inflation decreased in Argentina (to 47.6%, from 48.5%), South Africa (to 4.4%, from 5.1%), Saudi Arabia (to 2.2%, from 2.8%), Brazil (to 3.7%, from 4.0%), China (to 1.9%, from 2.2%) and Indonesia (to 3.1%, from 3.2%). On the other hand, inflation picked up in India (to 5.2%, from 4.9%) and the Russian Federation (to 4.3%, from 3.8%).

For more information contact Mrs Louise Fietz, Media Coordinator:

OECD Public Affairs & Communications Directorate 2
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