OECD's YoY inflation slightly increases to 5.9% in May 2024

Energy inflation within the OECD saw a significant rise from -0.1 per cent in April to 2.5 per cent in May, marking its highest level since February 2023. Twenty-four OECD countries reported increases in energy inflation, with the most substantial hikes occurring in Turkiye, Denmark, and Japan.

In the G7 nations, YoY headline inflation remained stable at 2.9 per cent in May. Italy continued to register the lowest headline inflation in the G7, maintaining a rate of 0.8 per cent due to strong and persistent energy deflation. Japan experienced the highest increase in headline inflation by 0.3 percentage points, driven by a strong rise in energy inflation, which also surged in France. Core inflation was the main driver of headline inflation across nearly all G7 countries, OECD said in a news release.

In the euro area, YoY inflation, as measured by the Harmonised Index of Consumer Prices (HICP), rose slightly to 2.6 per cent in May from 2.4 per cent in April. This increase marked the first rise in core inflation since June 2023. Despite the uptick, energy inflation continued to show significant variability across member states.

Within the G20, YoY inflation increased slightly to 7.3 per cent in May from 7.1 per cent in April. Headline inflation decreased in Indonesia but exceeded 270 per cent in Argentina. Brazil saw its first inflation increase since September 2023. Headline inflation remained stable in China, Saudi Arabia, and South Africa.

ALCHEMPro News Desk (DP)