Year-on-year (YoY) inflation in the Organisation for Economic Co-operation and Development (OECD) as measured by the Consumer Price Index (CPI) rose to 10.5 per cent in September 2022, from 10.3 per cent in August. Double-digit inflation in September 2022 was recorded in 19 of 38 OECD countries, with the highest rates observed in Estonia, Hungary, Latvia, Lithuania, and Turkiye (all above 20 per cent).
Inflation excluding food and energy continued to rise in the OECD in September (to 7.6 per cent). In particular, services prices accelerated in a majority of OECD countries, according to a press release by OECD. Although energy inflation fell somewhat for the third consecutive month, down to 28.8 per cent YoY in September 2022 with declines in 22 OECD countries, it remains high.
Energy inflation rose substantially in a subset of European economies. YoY inflation in the G7 rose to 7.7 per cent in September 2022, from 7.5 per cent in August. This rise occurred even though energy price inflation slowed in all G7 countries except Germany. The contribution of inflation excluding food and energy to headline inflation increased in all the G7 countries except France from August to September, with a significant increase in Germany. Food and energy prices inflation continues to be the main contributors to headline inflation in France, Germany, Italy, and Japan.
In the euro area, YoY inflation as measured by the Harmonised Index of Consumer Prices (HICP) rose to 9.9 per cent in September 2022, from 9.1 per cent in August, with all food price inflation, energy price inflation, and inflation excluding food and energy increasing in September. Eurostat’s flash estimate for the euro area in October 2022 points to a further increase in YoY inflation to 10.7 per cent, reflecting essentially an increase in energy price inflation to 41.9 per cent up from 40.7 per cent in September 2022.
In the G20, YoY inflation increased to 9.5 per cent in September 2022, from 9.2 per cent in August. Outside the OECD, YoY inflation rose in Argentina, China, India, Indonesia, and Saudi Arabia, but decreased in Brazil and South Africa.
Fibre2Fashion News Desk (NB)