OECD annual inflation slows to 2.1% in June 2019


Annual inflation in the OECD area slowed to 2.1% in June 2019, from 2.3% in May, as energy prices fell by (minus) 0.1%, following the 2.4% increase in May. Food price inflation also slowed to 2.3%, compared with 2.5% in May, while annual inflation excluding food and energy increased marginally to 2.2%, compared with 2.1% in May.

Graph 1 - Consumer prices, selected areas

June 2019, percentage change on the same period of the previous year

Graph 2 - Total (CPI) and euro area (HICP)

Percentage change on the same month of the previous year

In June 2019, annual inflation decreased in Canada (to 2.0%, from 2.4% in May), the United States (to 1.6%, from 1.8%) and Italy (to 0.7%, from 0.8%). It was stable in Japan (at 0.7%) and in the United Kingdom (at 1.9%). Annual inflation picked up in France (to 1.2%, from 0.9%) and Germany (to 1.6%, from 1.4%).

Annual inflation in the Euro area, as measured by the HICP[1], picked up to 1.3% in June, compared with 1.2% in May, although Eurostat’s flash estimate points to inflation slowing to 1.1% in July. Excluding food and energy, euro area inflation also increased to 1.1% in June, compared with 0.8% in May but, again, the flash estimate points to a deceleration to 0.9% in July.

Annual inflation in the G20[2] area decreased to 3.5% in June 2019, compared with 3.7% in May. Among non-OECD G20 economies, annual inflation decreased marginally, but remains very high in Argentina (to 55.8%, from 57.3%), Brazil (to 3.4%, from 4.7%), the Russian Federation (to 4.7%, from 5.1%) and India (to 8.6%, from 8.7%). In Saudi Arabia prices continued to fall albeit at a slower pace (minus 1.4% in June compared to minus 1.5% in May). On the other hand, annual inflation was stable in China (at 2.7%) and Indonesia (at 3.3%) and picked up marginally in South Africa (to 4.5%, from 4.4%).