OECD’s annual inflation rate drops to 4.4 percent amid weaker energy prices
Date
11/6/2024 7:53:37 AM
(MENAFN) The Organization for Economic Co-Operation and Development (OECD) reported on Wednesday that the average annual inflation rate across its member countries eased to 4.4 percent in September, down from 4.7 percent in August. This decline is attributed to falling energy prices, which have continued to exert downward pressure on inflation rates across the OECD. Specifically, OECD energy inflation remained in negative territory, decreasing further to minus 2.2 percent year-on-year in September compared to minus 0.4 percent in August. This trend was widespread, with energy inflation falling in 34 OECD countries, including 17 that already recorded negative energy inflation in August.
While energy inflation showed a marked decline, food and core inflation rates remained relatively stable, indicating that price levels in other sectors held steady. The overall inflation rate fell in 27 of the 38 OECD countries, rose in six, and remained stable or broadly unchanged in five. The OECD highlighted that although headline inflation has slowed, the average price levels across the OECD region were approximately 30 percent higher in September 2024 compared to December 2019, reflecting the lingering impact of price increases since the onset of the COVID-19 pandemic.
Within the G7 nations, annual inflation also saw a slight slowdown, reaching 2.2 percent in September, down from 2.4 percent in August. Similarly, in the euro area, inflation dropped to 1.7 percent in September from 2.2 percent in August, marking the first time inflation has fallen below 2 percent since June 2021. This trend underscores a gradual easing of inflationary pressures in these key economic blocs.
In the larger G20 group, inflation similarly trended downwards, with the year-on-year rate slipping to 6.0 percent in September from 6.2 percent in August. The overall moderation in inflation among OECD and G20 countries signals a broad-based slowdown, albeit with notable differences in inflation levels across different regions and sectors.
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