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OECD's YoY inflation slightly increases to 5.9% in May 2024

11 Jul '24

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OECD YOY inflation slightly increases to 5.9% in May 2024

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Inflation in the OECD rose slightly to 5.9 per cent YoY in May from 5.7 per cent in April.
Energy inflation surged to 2.5 per cent, its highest since February 2023.
In the G7, inflation remained stable at 2.9 per cent.
The euro area's inflation increased to 2.6 per cent.
Within the G20, inflation rose to 7.3 per cent, with Argentina exceeding 270 per cent.

Year-on-year (YoY) inflation in the Organisation for Economic Cooperation and Development (OECD), as measured by the consumer price index (CPI), rose slightly in May 2024 to 5.9 per cent from 5.7 per cent in April. Since October 2023, YoY inflation has hovered around 6.0 per cent. Headline inflation increased in 18 of the 38 OECD countries and declined in 13. Inflation rates remained above 5.0 per cent in Colombia and Iceland, and above 70 per cent in Turkiye.

Energy inflation within the OECD saw a significant rise from -0.1 per cent in April to 2.5 per cent in May, marking its highest level since February 2023. Twenty-four OECD countries reported increases in energy inflation, with the most substantial hikes occurring in Turkiye, Denmark, and Japan.

In the G7 nations, YoY headline inflation remained stable at 2.9 per cent in May. Italy continued to register the lowest headline inflation in the G7, maintaining a rate of 0.8 per cent due to strong and persistent energy deflation. Japan experienced the highest increase in headline inflation by 0.3 percentage points, driven by a strong rise in energy inflation, which also surged in France. Core inflation was the main driver of headline inflation across nearly all G7 countries, OECD said in a news release.

In the euro area, YoY inflation, as measured by the Harmonised Index of Consumer Prices (HICP), rose slightly to 2.6 per cent in May from 2.4 per cent in April. This increase marked the first rise in core inflation since June 2023. Despite the uptick, energy inflation continued to show significant variability across member states.

Within the G20, YoY inflation increased slightly to 7.3 per cent in May from 7.1 per cent in April. Headline inflation decreased in Indonesia but exceeded 270 per cent in Argentina. Brazil saw its first inflation increase since September 2023. Headline inflation remained stable in China, Saudi Arabia, and South Africa.

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