Year-on-year inflation in the OECD, as measured by the Consumer Price Index (CPI), remained broadly stable in August 2022, reaching 10.3%, after 10.2% in July and 10.3 % on June. Between July and August 2022, overall inflation declined in 16 of the 38 OECD countries, mainly thanks to the slowdown in energy prices. However, 15 OECD countries continued to experience double-digit inflation in August 2022, with the highest rates observed in Estonia, Latvia, Lithuania and Turkey (all above 20%).
Energy price inflation in the OECD fell to 30.2% yoy in August 2022, compared to 35.3% in July 2022, with falls in more than 60% of OECD countries. In contrast, both food price inflation and inflation after food and energy continued to rise in the OECD in August 2022.
Inflation on an annual basis also remained broadly constant in the G7 countries, reaching 7.5% in August 2022. Global inflation declined in Canada, France, the United Kingdom and the United States, thanks to the slowdown in the prices of energy, while it increased in Germany, Italy and Japan. Inflation after food and energy mainly contributed to headline inflation in Canada, the United Kingdom and the United States, while the combined contribution of food and energy prices drove headline inflation in France, Germany, Italy and Japan.
In the euro area, year-on-year inflation as measured by the Harmonized Index of Consumer Prices (HICP) rose to 9.1% in August 2022, from 8.9% in July 2022, as the Rising food price inflation and inflation excluding food and energy products more than offset the deceleration in energy prices. Eurostat’s flash estimate for the euro area in September 2022 indicates a further increase in inflation on an annual basis (to 10.0%), with inflation excluding food and energy estimated to rise to 4.8. % from 4.3% in August 2022 and energy price inflation to 40.8% from 38.6% in August 2022. In the G20, year-on-year inflation remained stable in August 2022, at 9 , 2% for the third consecutive month. Outside the OECD, year-on-year inflation increased in Argentina, India and Saudi Arabia, but declined in Brazil, China, Indonesia and South Africa.