Inflation across OECD countries edges down to below 2pc mark

 
Ben Southwood
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INFLATION across the OECD bloc of rich countries fell slightly in the year to July, according to data released by the Paris-based organisation today.

Prices increases were 1.9 per cent higher in July than they were a year previously, but the pace of growth was slightly down on the two per cent recorded in June.

This came from food price inflation declining to its lowest rate since September 2009, and energy prices going up only 0.7 per cent through the year. Yet food prices are rising again, which could affect August’s data.

Japan appeared to be slipping into serious deflation, with prices falling 0.4 per cent in the year to July, compared to the 0.2 per cent decline seen up to June.

The UK was one of the few countries to put upward pressure on the rate between June and July, as the consumer price index rose 2.6 per cent to July, compared to 2.4 per cent in the year to the previous month. The biggest rise was for Russia, whose inflation rate jumped 1.3 points to 5.6 per cent.

Consumer price inflation rates for the US, Canada, Italy, South Africa, China, India fell in July, while rates stayed constant in France and Germany.