OECD inflation drops by 10.3% YoY in Nov 2022; energy prices sluggish

Nevertheless, inflation increased by at least 0.5 percentage point in Chile, the Czech Republic, Finland, Hungary, the Slovak Republic, and Sweden. The highest YoY inflation rates were recorded in Estonia, Hungary, Latvia, Lithuania, and Turkiye (all above 20 per cent), according to a media release by the OECD.

Energy inflation continued to fall in the OECD to 23.9 per cent in November, after 28.1 per cent in October, reaching its lowest rate since September 2021. Nevertheless, it remained above 10 per cent in 34 of 38 OECD countries and above 30 per cent in 14 of them. Energy inflation decreased in most OECD countries, increasing only in the Czech Republic, Finland, Slovenia, and Sweden.

YoY inflation in the G7 fell to 7.4 per cent in November, from 7.8 per cent in October. Among G7 countries, inflation declined in Germany, the United Kingdom, and the United States and showed only small changes in the other countries.

In the euro area, YoY inflation as measured by the Harmonised Index of Consumer Prices (HICP) fell to 10.1 per cent in November, from 10.6 per cent in October, as energy inflation fell sharply. This was the first decrease in YoY HICP inflation since June 2021. Eurostat’s flash estimate for the euro area in December 2022 points to a further decrease in YoY inflation, to 9.2 per cent, with energy inflation falling to 25.7 per cent from 34.9 per cent in November, but inflation excluding food and energy increasing to 5.2 per cent from 5.0 per cent.

In the G20, YoY inflation fell to 9.0 per cent in November, from 9.5 per cent in October. Outside the OECD, YoY inflation decreased in Brazil, China, India, Indonesia, Saudi Arabia, and South Africa, and only increased in Argentina.

Fibre2Fashion News Desk (NB)