OECD annual inflation stable at 2.9% in September 2018


Annual inflation in the OECD area was stable at 2.9% in September 2018, for the third consecutive month. This stability however is the result of a significant increase of annual inflation in Turkey (24.5% in September, after 17.9% in August) and a slowdown in the OECD area excluding Turkey (2.2% in September, down from 2.4% in August[1]), mainly driven by lower inflation in Canada and the United States.

Energy prices, in the OECD area as a whole, rose at a slower pace, by 8.2% in September, compared with 10.2% in the year to August, while food prices rose by 2.3% in September, compared with 2.0% in August 2018. Excluding food and energy, OECD inflation increased to 2.3% in September, compared with 2.1% in August.

Consumer prices, selected areas

September 2018, percentage change on the same period of the previous year

OECD-Total[2] (CPI) and euro area (HICP)

Percentage change on the same month of the previous year

In the year to September 2018, annual inflation decreased markedly in Canada (to 2.2%, from 2.8%) and the United States (to 2.3%, from 2.7%) and more moderately in the United Kingdom (to 2.2%, from 2.4%), Italy (to 1.4%, from 1.6%), France (to 2.2%, from 2.3%) and Japan (to 1.2%, from 1.3%). Among G7 countries, inflation only increased in Germany (to 2.3%, from 2.0%).

Annual inflation in the Euro area, as measured by the HICP, increased to 2.1% in September, compared with 2.0% in August. Excluding food and energy, euro area inflation was stable at 0.9% in September. Eurostat’s flash estimate for October points to a pick-up in overall inflation as well as inflation excluding food and energy to 2.2% and 1.1%, respectively.

Annual inflation in the G20 area[3] increased to 3.6%[4] in September 2018, compared with 3.5% in August. Among the G20 emerging economies, annual inflation picked up markedly in Argentina (to 40.5%, from 34.4%) and more moderately in Brazil (to 4.5%, from 4.2%), the Russian Federation (to 3.4%, from 3.1%) and China (to 2.5%, from 2.3%). It was stable in South Africa (at 4.8%) and India (at 5.6%, for the third consecutive month), while it decreased in Indonesia (to 2.9%, from 3.2%) and Saudi Arabia (to 2.1%, from 2.2%).