Inflation in Organization for Economic Co-operation and Development (OECD) countries slowed again in May, year on year, to 6.5%, down from 7.4% in April and the lowest level since December 2021.
According to a statement issued today by the Organization for Economic Cooperation and Development, the inflation rate decreased between April and May in all member states of the organization, with the exception of the Netherlands, Norway and the United Kingdom, as it ranged from less than 3% in Costa Rica and Greece. Denmark and more than 20% in Hungary and Turkey.
In line with previous months, core inflation (which excludes unprocessed food and energy products) eased at a much slower pace, settling at 6.9% in May, compared to 7.1% in April.
The annual development of energy prices in OECD countries decreased to -5.1% in May, from 0.7% in April, registering negative values in 16 OECD countries, but remaining above 10% in Latvia, Italy, Czech Republic Colombia and Hungary.
Food prices continued to slow year-on-year, reaching 11.0% in May 2023, down from 12.1% in April, registering a decline in 34 OECD countries.
In the G7 (a group of the world’s most industrialized countries, which includes Germany, Canada, the United States, France, Italy, Japan and the United Kingdom) year-on-year inflation fell to 4.6% in May from 5.4% in April, reaching its lowest level since September 2021.
Inflation fell in all G7 countries except the UK, with the lowest rates in Japan and Canada, in both cases below 3.5%.
Food and energy continued to be the main drivers of inflation in Italy, while core inflation was the main driver of prices in France, Germany, Japan, the United Kingdom and the United States.
In the eurozone, year-on-year inflation, as measured by the Harmonized Index of Consumer Prices (HICP), fell to 6.1% in May, from 7.0% in April, with Eurostat’s flash estimates for June 2023 indicating more. Inflation decreased year on year to 5.5%.
In the G20 (consisting of 19 countries – Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom and the United States United States – and European Union), year-on-year inflation fell to 5.9% in May from 6.5% in April.
Outside the OECD, inflation has fallen in Brazil, India, Indonesia and South Africa, but has risen in Argentina, while remaining stable in China and Saudi Arabia.
Charlotte Whitmore is a contributor at Mediarunsearch.co.uk, covering a broad range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting and practical information that helps readers stay informed about current events and emerging developments. Her work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism that keeps readers connected to the issues shaping the UK and beyond.