Global inflation hits double digits: OECD

Surging food and energy prices drive inflation to new heights

Inflation written newspaper

Consumer inflation hit double digit levels in June, according to the latest data from the OECD.

Annual consumer inflation for the OECD area rose to 10.3% in June from 9.7% in May, primarily due to higher food and energy prices.

“This represents the sharpest price increase since June 1988,” the group said.

Food prices were up 13.3% in June, compared with 12.6% in May, which marked the strongest rise in food prices since July 1975, the OECD reported.

Energy prices also continued to rise, with annual inflation hitting 40.7% in June, up from 35.4% in May.

Excluding food and energy, core inflation was 6.7% in June, up from 6.4% in May.

Inflation was up in all OECD countries except Germany, Japan and the Netherlands. Inflation was at double digit rates in about one third of them, led by Turkey at 78.6%.

For the G7, inflation averaged 7.9% in June, up from 7.5% in May. But core inflation in the G7 (excluding food and energy) was 4.7% in June, down from 4.8% in May.

For the G20 area, annual inflation rose to 9.2% in June, compared with 8.9% in May. The OECD reported “marked increases” in all G20 emerging markets apart from India.