Inter-annual inflation for Organization for Economic Co-operation and Development (OECD) countries rose to 5.9% in July. Following June’s CPI of 5.7%, this represents the first increase since October 2022. The red lantern on the map is in Turkey because, despite the fact that inflation has been sustained in the rest of the organization’s members, conservative Recep Tayyip Erdogan saw the CPI rise sharply to 47.8%. Inflation fell in 26 of the 38 parts of the organization, 17 of which saw a fall of more than 0.5%.
The consumer price index for energy remained negative at -7.5% in OECD member countries, after -9.6% in June. Month-to-year data was negative in 30 countries and decreased month-on-month in 22 countries. Grocery inflation continues to fall, standing at 9.2%, down from 10.1% in June, the lowest reading since February last year. The underlying index, inflation excluding food and energy, edged up to 6.7%, up 0.1% from the previous month.
The G-7 countries kept inflation stable at 3.9% in July. The country that recorded the largest decrease was the United Kingdom, with 6.8%. However, this has not prevented it from continuing to boast the highest CPI of these countries. Inflation fell in Italy (5.9%), France (4.3%), and Germany (6.2%). On the contrary, it increased in the United States (3.2%) and Canada (3.3%). Headline inflation remained stable at 3.1% in Japan. Core inflation continued to be the largest contributor to headline inflation in the G7 countries.
In the G-20, inflation rose slightly year-on-year to stand at 5.8% in July, up 0.3% month-on-month. The CPI rose for the second straight month in India (7.44%) and Brazil after a year of declines. On the other hand, inflation fell in China (-0.3%), Argentina (6.3%), South Africa (4.7%), Saudi Arabia (2.3%), and Indonesia (3.1%). In Spain, inflation was 2.3%, four tenths more than in June.
Inflation, as measured by the Harmonized Index of Consumer Prices (HICP), continues to decline, albeit at a slower pace than in previous months, reaching 5.3% in July this year, after 5.5% in the previous month. According to a Eurostat estimate, inflation would have remained stable in August 2023. France’s HICP is expected to have risen to 5.7% from 5.1% in July, reflecting a sharp rise in energy inflation. According to the report, price increases are continuing in countries like Germany and declining in Italy. It is estimated that the impact of energy deflation in euro-zone countries was smaller in August than in July and that underlying energy deflation slowed to 5.3% from 5.5% in July.
