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Finance

Inflation in OECD countries reaches lowest level since 2021

Inflation in Organization for Economic Cooperation and Development (OECD) countries in May fell to its lowest level since December 2021, according to new data from the organization.

According to the OECD, year-on-year inflation as measured by the consumer price index fell to 6.5%, down from 7.4% in April.

Between April and May, inflation fell in all OECD countries excluding the United Kingdom, the Netherlands, and Norway, the organization said. Inflation ranged from less than 3% in Costa Rica, Greece and Denmark, to more than 20% in Hungary and Turkey.

Core inflation, which excludes food and energy, has continued the trend of declining at a slower pace, falling from 7.1% in April to 6.9% in May.

Year-over-year inflation in the G7 fell to 4.6% in May from 5.4% in April, reaching its lowest level since September 2021, according to the OECD data.

Inflation fell in all G7 countries excluding the United Kingdom. The lowest inflation rates in the G7 were posted in Canada and Japan where inflation was below 3.5%.

For the G20 countries, year-over-year inflation was down from 6.5% in April to 5.9% in May. It decreased in Brazil, India, Indonesia, and South Africa, increased in Argentina, and was stable in China and Saudi Arabia.

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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