The highest inflation rates were recorded in Hungary, Latvia, Lithuania, and Turkiye—all remaining above 20 per cent. After the peak observed in June 2022, energy inflation continued to fall in the OECD, albeit at a slower pace than the previous month. It reached 16.4 per cent in January 2023, its lowest level since March 2021, down from 18.2 per cent in December 2022. The fall in energy inflation stemmed partly from shifting policy in the Netherlands (introduction of a price cap on energy) and Italy (decrease of regulated energy products prices). In Belgium, Denmark, Italy, and Turkiye, the deceleration in energy prices in January 2023 was largely explained by the strong increase in the CPI for energy in January 2022 (i.e. base effect), the OECD said in a press release.
YoY inflation in the Organisation for Economic Cooperation and Development (OECD) as measured by the CPI fell slightly to 9.2 per cent in January 2023, down from 9.4 per cent in December 2022. Declines in inflation between December 2022 and January 2023 were recorded in half of the OECD countries, compared to two-thirds between November and December 2022.
In January 2023, inflation was broadly stable in G7 as a whole. It increased in Germany, Japan and, to a lesser extent, in France, while it was broadly stable in the US. Italy recorded a marked decline, while Canada and the UK recorded meaningful but less substantial falls.
Energy inflation continued to be among the main contributors to headline inflation in France, Italy, and Japan, while inflation excluding energy and others was the main driver in Canada and the US. In Germany and the UK, both energy and food inflation contributed almost equally to headline inflation.
In the euro area, YoY inflation as measured by the Harmonised Index of Consumer Prices (HICP) fell to 8.7 per cent in January 2023, from 9.2 per cent in December 2022.
In the G20, YoY inflation was broadly stable, reaching 8.4 per cent in January 2023. Inflation decreased in Indonesia and South Africa, but increased in Argentina, China, and India. It was broadly stable in Brazil and Saudi Arabia.
Fibre2Fashion News Desk (NB)