OECD annual inflation stable in May

Annual inflation in the OECD area remained at 0.8 per cent in May 2016 for the third consecutive month.

Excluding food and energy, annual inflation increased slightly to 1.9 per cent in May 2016, compared with 1.8 per cent in April.

Food price inflation slowed, to 0.1 per cent in May, compared with 0.4 per cent in April.

Energy prices fell (by -8.1 per cent), marginally faster than the -7.8 per cent decline in April.

In Latvia, which became a new OECD member country on July 1st, annual inflation was stable at -0.8 per cent in May.

Annual inflation decreased in Canada (to 1.5 per cent, in May, down from 1.7 per cent in April), the United States (to 1.0 per cent, down from 1.1 per cent) and Japan (to -0.4 per cent, down from -0.3 per cent).

Inflation was stable in the United Kingdom (at 0.3 per cent) and increased in Germany (0.1 per cent up from -0.1 per cent), France (0.0per cent , up from -0.2 per cent) and Italy (-0.3 per cent, up from -0.5 per cent).

Eurostat’s flash estimate for the Euro area in June 2016 points to a further pick up in annual inflation (to 0.1 per cent).

Annual inflation in the G20 area was stable at 2.3 per cent in May for the third consecutive month.

Among non-OECD countries, annual inflation was stable in Brazil (at 9.3 per cent), the Russian Federation (at 7.3 per cent) and South Africa (at 6.5 per cent).

Annual inflation increased in India (to 6.6 per cent, up from 5.9 per cent).