OECD Annual Inflation Highest Since 2000

Further evidence of rising inflation is provided by the OECD’s compilation of prices in member countries. Consumer prices in the OECD area rose by 4.4% in the year to June 2008, compared with 3.9% in the year to May 2008.

This is the highest inflation rate since March 2000.

On a monthly basis, the price level rose by 0.6% in June, compared with 0.7% in May.

Consumer prices for energy were up by 19.3% year-on-year in June, as against 14.7% in May and consumer prices for food by 6.5% compared with 6.0% in May. Excluding food and energy, consumer prices rose by 2.2% in the year to June, compared with 2.1% in May.

In the euro area, the Harmonised Index of Consumer Prices [HICP] was up by 4.0% in the year to June, compared with 3.7% in the year to May. Month on month, the HICP in the euro area increased by 0.4% between May and June, after a rise of 0.6% between April and May. Excluding food and energy, the year-on-year rise in the HICP in the euro area amounted to 1.8% in June, compared with 1.7% in May.

In the United States, the Consumer Price Index (CPI) increased by 5.0% over the year to June, compared with 4.2% in the year to May.

In Japan, consumer prices were up by 2.0% year-on-year in June, as against 1.3% in May.

Over the year to June, consumer prices rose by 3.8% in Italy and in the United Kingdom, 3.6% in France, 3.3% in Germany and 3.1% in Canada.