OECD CPI inflation holds steady at 5.7% in February 2024

Headline inflation fell in three-quarters of OECD countries, with the largest monthly declines seen in Poland and Sweden and the largest rise in Turkiye. It was below 2 per cent in seven OECD countries and remained negative in Costa Rica.

OECD energy inflation increased, but remained moderately negative at minus 0.5 per cent in February, despite strong energy inflation in Turkiye and Colombia.

OECD core inflation (less food and energy) continued to decline, but remained high at 6.4 per cent, reflecting sticky services prices, an OECD release said.

YoY inflation was also stable in the G7 nations at 2.9 per cent in February, its lowest level since April 2021. It increased in Japan, reflecting a base effect, as energy prices had declined significantly in February 2023 with the introduction of energy subsidies.

By contrast, the United Kingdom and Germany registered the strongest declines in headline inflation in February. Core inflation was the main contributor to headline inflation in most G7 countries.

In the euro area, YoY inflation as measured by the harmonised index of consumer prices (HICP) declined to 2.6 per cent in February compared to 2.8 per cent in January.

Core inflation in the euro area declined at a similar pace to that of the OECD. In March 2024, Eurostat’s flash estimate pointed to another decline in euro area headline (to 2.4 per cent) and core inflation (to 2.9 per cent after 3.1 per cent in February), with a slowing decline in energy prices.

In the G20, YoY inflation rose to 6.9 per cent in February compared to 6.4 per cent in January, reaching its highest level since March 2023. This rise was driven partly by an increase in headline inflation in China, which turned positive for the first time since August 2023.

Headline inflation also increased in Saudi Arabia and Indonesia and jumped even further in Argentina. It was broadly stable in Brazil and South Africa.

Fibre2Fashion News Desk (DS)