OECD says inflation slows sharply thanks to oil prices

PARIS - Agence France-Presse

Consumer food prices in the EU rose faster than the global trend at 3.2%, with CPI within the eurozone advancing by 2.9%, the OECD has said. EPA photo

Annual inflation slowed to 1.9 percent in November in industrialised countries, a drop of 0.3 percent from the level in the year to October, thanks to moderating oil prices, the OECD said on Jan.9.

“This easing in the annual rate of inflation mainly reflected slower growth in energy prices, which increased by 2.9 percent in November, down from 5.4 percent in October,” said the Organisation for Economic Cooperation and Development in a statement.

Food price inflation rose modestly in November to 2.2 percent from 2.1 percent in October.

Excluding volatile food and energy prices, annual inflation in the 34 OECD countries was unchanged for the fourth consecutive month, at 1.6 percent in November 2012.

Slowing inflation should give central banks additional latitude to continue or increase their measures to stimulate economies, with the European Central Bank and Bank of England to take rate decisions on Thursday.

Annual inflation in the eurozone slowed to 2.2 percent in November from 2.5 percent in October.
It slid to 1.8 percent in the United States from 2.2 percent, and was stable in Britain at 2.7 percent The drop in consumer prices in Japan moderated to 0.2 percent in November from 0.4 percent in October.

Outside the OECD area, annual inflation slid to 9.5 percent in India in November from 9.6 percent in October.

It ticked up to 5.5 percent in Brazil from 5.4 percent, and rose to 2.0 percent in China from 1.7 percent the previous month.