OECD annual inflation stable at 0.6% in July 2015

Annual inflation in the OECD area was stable for the third consecutive month

Annual inflation in the OECD area was stable at 0.6% in the year to July 2015, for the third consecutive month. Energy prices continued to fall in the year to July (by 9.5%), marginally faster than the 9.3% decline in June. Food price inflation slowed slightly to 1.3% in July, compared with 1.5% in June. Excluding food and energy, the OECD annual inflation rate was up slightly in July (to 1.7% compared with 1.6% in the previous month).

In the year to July 2015, inflation recorded in most major OECD economies hardly changed. Annual inflation was stable in Italy (at 0.2%) and increased marginally in the United States (to 0.2%, up from 0.1%) and the United Kingdom (to 0.1%, up from 0.0%), and more markedly in Canada (to 1.3%, up from 1.0%). It decreased slightly in Japan (to 0.2%, down from 0.4%), in Germany and France (to 0.2%, down from 0.3%).

Euro area annual inflation, as measured by the HICP, was stable at 0.2% in July. Excluding food and energy, Euro area annual inflation increased to 1.0% (from 0.8%) in July. Eurostat's flash estimate for August 2015 points to annual inflation remaining stable at 0.2%.

Annual inflation in the G20 area was at 2.5% in July 2015, with a wider variation of inflation rates across non-OECD countries. Annual inflation accelerated in Brazil (to 9.6% - the highest inflation rate since November 2003). It increased slightly in the Russian Federation (to 15.6%), China (to 1.6%) and South Africa (to 4.7%). By contrast, annual inflation was stable in Indonesia (at 7.3%) and Saudi Arabia (at 2.2%) and decreased in India (to 4.4%).

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