Year-on-year inflation in the OECD, as measured by the Consumer Price Index (CPI), remained broadly stable in August 2022, reaching 10.3%, after reaching 10.2% in July and 10.3% in June. Between July and August 2022, headline inflation fell in 16 of the 38 OECD countries, mainly due to a slower growth in energy prices. However, 15 OECD countries continued to report double-digit inflation in August 2022, with Estonia, Latvia, Lithuania and Turkey seeing the highest rates (all above 20%).
OECD energy price inflation fell to 30.2% year-on-year in August 2022, from 35.3% in July 2022, with a decline in more than 60% of OECD countries. In contrast, food price inflation and inflation excluding food and energy continued to rise in the OECD in August 2022.
Year-on-year inflation also remained broadly stable across the G7 countries, reaching 7.5% in August 2022. Headline inflation declined in Canada, France, the United Kingdom and the United States, driven by a slowdown in energy prices. , while it has increased in Germany, Italy and Japan. Inflation excluding food and energy was the main contributor to headline inflation in Canada, the United Kingdom and the United States, while the combined contribution of food and energy prices drove headline inflation in France, Germany, Italy and Japan (Graph 2).
In the euro area, the Annual Harmonized Index of Consumer Price Inflation (HICP) inflation rose to 9.1% in August 2022 from 8.9% in July 2022, offsetting a slowdown in food and non-food and energy inflation as consumer price inflation rises. Higher energy prices. Eurostat’s flash forecast for the euro area in September 2022 points to a further increase in year-on-year inflation (10.0%), with inflation excluding food and energy rising to 4.8% from 4.3% in August 2022 and Energy Price inflation rose to 40.8% in August 2022 compared to 38.6%.
In the G20, year-on-year inflation remained stable in August 2022, at 9.2% for the third consecutive month. Outside the OECD, inflation increased year-on-year in Argentina, India and Saudi Arabia, but decreased in Brazil, China, Indonesia and South Africa.