Good news for Europe. Inflation in the OECD area, measured by the Consumer Price Index (CPI), year-on-year, was generally stable, at 5.8%, in March 2024, after 5.7% in February, indicates Monday, May 6, 2024, the Organization for Economic Cooperation and Development.
Headline inflation fell in 19 OECD countries, with the largest monthly decline recorded in the Slovak Republic. The highest overall inflation was observed in Turkey (above 60%), while it was below 2% in seven OECD countries.
Remarkable disparities
In March 2024, OECD energy inflation was positive for the first time since April 2023, at 0.6%, increasing in 28 OECD countries, while remaining negative in 12 of these countries. (where prices have fallen more slowly), including the United Kingdom, Italy and the United States.
Food inflation fell again and reached 4.9% in March, after 5.3% in February, with falls in 34 OECD countries, while core inflation (inflation excluding food and energy) in the OECD area was stable at 6.4% in March. Decreases in core inflation of 0.2 percentage points or more were recorded in 16 OECD countries, while increases of 0.2 percentage points or more were recorded in 6 other countries. Year-on-year inflation in the G7 increased slightly, reaching 3.1% in March from 2.9% in February.
The surge in energy
Food inflation decreased, while energy inflation, which remained negative, increased, specifies the OECD, adding that underlying inflation, on the other hand, was stable. Headline inflation fell in France and Germany and reached its lowest level since September and May 2021, respectively. On the other hand, it increased in Italy, where the fall in energy prices slowed significantly, and in the United States, where food inflation increased slightly.
Role of core inflation
In the euro zone, year-on-year inflation, measured by the Harmonized Consumer Price Index (HICP), fell slightly to 2.4% in March, after 2.6% in February. Food inflation fell by more than a percentage point, reaching 2%. Core inflation fell for the eighth consecutive month but remained above 2%.
In the G20, year-on-year inflation was stable at 6.9% in March. Headline inflation fell in Brazil, China, Saudi Arabia and South Africa, while it rose in Indonesia and jumped further in Argentina.
