Inflation across OECD member states hits new 27-month high of 2.4 per cent

CONSUMER prices across member states of the Organisation for Economic Co-operation and Development (OECD) rose by 2.4 per cent in February compared with 2.2 per cent in January -- the highest rate since October 2008.

This increase was driven by food and energy inflation which reached three per cent and 10.1 per cent respectively.

Excluding food and energy, the annual inflation rate remained at 1.3 per cent in February.

Inflation grew from 1.6 per cent in January to 2.1 per cent in February in the United States, and from four per cent in January to 4.4 per cent in February in the United Kingdom. Italy and Germany also experienced further increases in price levels.

Inflation slightly decreased in Canada and France, and remained stable in Japan. Euro area annual inflation rose from 2.3 per cent in January to 2.4 per cent in February.

Meanwhile, another report from Kantar Worldpanel said that grocery price inflation increased to four per cent in the UK, over a recent 12 week period, the group said yesterday.