OECD annual inflation slows to 4.5% in February

ANKARA

Annual consumer inflation in the Organization for Economic Cooperation and Development (OECD) area eased to 4.5% in February from 4.7% in January, according to data released on Thursday.

Inflation declined in 15 of the 38 OECD countries and remained stable or broadly unchanged in another 15. However, eight OECD countries saw inflation rise, with notable increases exceeding 1.0 percentage point in Estonia and Norway.

OECD energy inflation dropped to 3.6% in February from 4.0% in January, with declines in 23 member countries, while 12 saw increases.

Food inflation remained constant at 4.4% across the OECD, though prices rose in 24 countries and fell in only six, largely due to a sharp 6.7 percentage point decline in Türkiye.

Core inflation, which excludes food and energy, fell slightly to 4.7% in the month, from 4.8%.

In the Group of Seven (G7), annual inflation slowed to 2.7% in February from 2.9% in January. France saw a notable decline in inflation due to a 15% cut in regulated electricity tariffs.

Japan’s inflation also eased after three months of rises, driven by falling energy inflation, although the country still reported the highest energy inflation among G7 members.

Inflation declined by 0.2 percentage points in both the UK and US, while it rose 0.7 percentage points in Canada due to the expiration of tax breaks on food, beverages, and books.

Across the G7, core inflation remained the key driver of overall price growth, except in Japan, where food inflation contributed significantly to headline inflation.

In the Group of 20 (G20), inflation fell to 4.3% in February, down from 4.8% in January, marking its lowest level since May 2021.

China saw deflation of 0.7%, largely due to a base effect related to the timing of the Lunar New Year holidays. Inflation also fell in Indonesia and India, while Argentina saw further declines, though inflation remained above 60%. In contrast, inflation rose in Brazil and remained broadly stable in Saudi Arabia and South Africa.