OECD annual inflation stable at 4.1% in August

ISTANBUL

Annual consumer inflation in the Organization for Economic Cooperation and Development (OECD) area was stable at 4.1% in August, according to data released on Monday.

Inflation rose in 15 of the 38 OECD countries, hovering above 5% in Colombia and Estonia, and above 30% in Türkiye.

On the other hand, it declined in 13 countries and remained stable or broadly stable in 10.

"Year-on-year food inflation in the OECD rose to 5% in August, up from 4.5% in July, reaching its highest level since February 2024 and with marked increases recorded in Türkiye, (South) Korea, and Colombia," the OECD said in a statement.

In August, food prices in the OECD were 45.8% higher than in December 2019, before the COVID-19 pandemic, supply chain disruptions, and start of the war in Ukraine, marking the largest cumulative increase among the three main inflation components (core, food, energy).

Meanwhile, energy prices in the OECD area also rose in August, hitting 0.7%, compared with 0.3% in July.

Core inflation, which excludes food and energy, edged down slightly to 4.3% in August.

In the Group of Seven (G7), annual inflation was broadly stable at 2.7% in August. "It increased by 0.2 percentage points in Canada, Germany, and the US. In contrast, it fell in Japan, reflecting a decline in food inflation and an even stronger decline in energy inflation."

In the Group of 20 (G20), inflation was also broadly stable at 3.7% in August.

Consumer prices fell in China, where it was at minus 0.4%. Inflation also dropped in Argentina (still above 30%) and South Africa, while it increased in India.

In the eurozone, annual inflation as measured by the Harmonized Index of Consumer Prices remained stable for the third consecutive month at 2% in August.

"Food inflation was stable at 3.2%, twice the rate seen in January 2025, while the decline in energy prices slowed. According to Eurostat’s flash estimate, in September 2025, year-on-year headline inflation in the euro area rose to 2.2% as the decline in energy prices slowed again while core inflation is estimated to have remained stable," it added.