Drop in energy prices drives dip in inflation for OECD members

INFLATION in the world’s more economically developed countries slowed down towards the end of 2012, the Organisation for Economic Cooperation and Development (OECD) announced yesterday.

In November 2012, consumer prices rose by just 1.9 per cent versus the same month a year earlier.

This compares to a 2.2 per cent rise in the prior month – from October 2011 to October 2012.

The lower inflation in the 34 OECD countries is mainly a reflection of a slowdown in the growth of oil prices. Across OECD members, energy prices rose 2.9 per cent in the 12 months to November, having risen 5.4 per cent in the 12 months to October. Meanwhile, food-price inflation rose, to 2.2 per cent from 2.1 per cent.

Within the OECD area, countries like Germany, France and the US saw a deceleration in annual inflation from October to November and contributed to the overall trend, while the UK was stable at 2.7 per cent and Japan saw its consumer prices decline by less in the period.

The slowdown comes as the European Central Bank and Bank of England are set to announce interest rate decisions today.