OECD annual inflation reaches 6% in December

Consumer prices climbed by 0.2% monthly in December 2023, according to data from a Paris-based agency.

Annual consumer inflation in the Organization for Economic Cooperation and Development (OECD) region climbed to 6% in December, following three months of reductions, according to figures released on Wednesday.

The figure increased from a two-year low of 5.8% in November, according to a statement from the Paris-based group.

Inflation rose in 14 OECD countries, while it fell in 21 and was unchanged in the remaining three.

Core inflation in the OECD, excluding food and energy, remained virtually steady in December at 6.7%.

While the OECD’s fall in food inflation slowed in December, reaching 6.7%, energy inflation remained negative for the eighth consecutive month.

Annual inflation in the Group of Seven (G-7) remained essentially steady at 3.2% in December, but it increased to 6.5% in the G-20.

Monthly consumer prices rose 0.2% in December, following a 0.1% increase in November.

In 2023, OECD inflation fell to 6.9% on average, down from 9.5% in 2022, driven by energy deflation (minus 0.9% annual average in 2023, compared to 29.6% in 2022).

Core inflation, in contrast, was higher than a year ago, at 7.0% in 2023 vs 6.7% in 2022, hitting its highest annual average rate since 1990.