Strong Acceleration in OECD Consumer Prices

Tuesday, February 02, 2010

Inflation is not at bay, according to the latest OECD release:
Consumer prices in the OECD area rose by 1.9% in the year to December 2009, compared with a rise of 1.3% in November 2009. Month-on-month, prices remained stable in December, compared with a rise of 0.1% in November 2009.
Consumer prices for energy went up by 8.5% in the year to December 2009, following a rise of 2.4% in November. Consumer prices for food fell by 1.0% in the year to December 2009, compared with a fall of 1.1% in November. Excluding food and energy, consumer prices rose by 1.6% in the year to December 2009, compared to a rise of 1.5% in November 2009.

GRAPH: Inflation rebounds strongly in OECD countries. I expect more to come.
The OECD extends its warnings,
In the euro area, annual inflation (HICP) was 0.9% in December 2009, up from 0.5% in November. Month-on-month, the HICP increased by 0.3% in December, compared to 0.1% in November. Excluding food and energy, the euro area annual inflation rate (HICP) increased by 1.1% in December, compared with a rate of 1.0% in November.
In the United States, the Consumer Price Index (CPI) rose by 2.7% over the year to December 2009, compared to an increase of 1.8% in the year to November.
In Japan, consumer prices decreased by 1.7% over the year to December, compared to a decline of 1.9% in November.
Over the year to December, annual inflation was 2.9% in the United Kingdom, 1.3% in Canada, 1.0% in Italy and 0.9% in France and Germany.
Consumer prices in the OECD area rose by 0.5% on average between 2008 and 2009 after increasing by 3.7% between 2007 and 2008. Consumer energy prices declined by 10.5% between 2008 and 2009, after an increase of 12.3% between 2007 and 2008. Excluding food and energy, the annual average increase in the price level from 2008 to 2009 amounted to 1.7%, compared with 2.2% between 2007 and 2008.
Download the complete OECD report and spreadsheet here.



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