Year-on-year inflation in the OECD, as measured by the consumer price index (CPI), eased to 9.4% in December from a peak of 10.8% in October and the lowest level since April last year, the organization announced on Tuesday. .
The Organization for Economic Co-operation and Development (OECD) said in a statement on Tuesday that inflation declined between November and December in 25 of the OECD’s 38 countries.
In December, double-digit inflation was recorded in 15 OECD countries, while the highest inflation rates exceeding 20% were registered in Hungary, Latvia, Lithuania and Turkey.
Inflation in OECD countries in 2022 more than doubled its 2021 level (9.6% compared to 4.0%) and reached its highest annual average since 1988.
After peaking in June 2022, energy inflation continued to decline sharply in most OECD countries from 23.8% in November to 18.4% in December, reaching its lowest level since August 2021.
Food inflation and core inflation (excluding food and energy) also eased to 15.6% and 7.2% respectively, due in part to sharp declines in Turkey.
Inflation eased in December in all G7 countries except Japan, with the largest decline seen in Germany, reflecting a one-time subsidy for gas bills.
Food and energy inflation continued to be the main driver of inflation in France, Germany, Italy and Japan, while non-food and energy inflation was the main driver in Canada, the United Kingdom and the United States.
In the Eurozone, annual inflation measured by the Harmonized Consumer Price Index (HICP) fell to 9.2% in December from 10.1% in November.
Energy inflation continued to decline, but non-food and energy inflation continued to rise in December.
The Eurostat Express Estimate for January 2023 points to a further year-on-year decline in the euro area to 8.5%, with energy inflation falling significantly and non-food and energy inflation remaining stable.
In the G20, annual inflation fell to 8.5% in December from 9.0% in November.
Outside the OECD, annual inflation declined in Brazil and South Africa, but increased in Argentina, China, India, Indonesia and Saudi Arabia.