OECD's inflation holds steady at 5.8% in March 2024

For the first time since April 2023, OECD energy inflation turned positive, registering at 0.6 per cent. This rise in energy prices was noted in 28 OECD countries, though 12, including the UK, Italy, and the US, still experienced negative energy inflation due to slower price declines. Core inflation, which excludes food and energy, remained unchanged at 6.4 per cent across the OECD. Significant declines in core inflation were recorded in 16 countries, while increases were seen in six, according to OECD.

In the G7, inflation edged up to 3.1 per cent in March from 2.9 per cent in February, with core inflation holding steady. France and Germany saw decreases in headline inflation, reaching their lowest levels since September 2021 and May 2021, respectively. Conversely, inflation rose in Italy due to a slower decline in energy prices. Core inflation continued to be a significant driver of the headline inflation across all G7 countries.

The euro area saw a slight decrease in year-on-year inflation, with the harmonised index of consumer prices (HICP) falling to 2.4 per cent in March from 2.6 per cent in February. Core inflation in the euro area continued its downward trend for the eighth consecutive month but remained above 2 per cent. Eurostat's flash estimate for April 2024 indicated that inflation in the euro area was stable, with a continued decline in core inflation and an uptick in energy inflation, which still remained in the negative territory.

Meanwhile, in the G20, inflation remained stable at 6.9 per cent in March. There were decreases in headline inflation in Brazil, China, Saudi Arabia, and South Africa, while increases were observed in Indonesia and a significant jump in Argentina.

ALCHEMPro News Desk (DP)