Wrestling inflation

Headline inflation ticked higher in May, driven by rising energy prices, according to data from the Organization for Economic Cooperation and Development (OECD).

The annual inflation rate crept up to 5.9% in May, from 5.7% in April, with headline inflation up in 18 of 38 countries, the organization noted in a report published Tuesday.

A sharp resurgence in energy inflation helped drive the rise in the headline reading, with OECD energy inflation jumping to 2.5% from -0.1% in April.

Food inflation remained stable, while core inflation, which excludes the food and energy components, ticked down to 6.1% in May from 6.2% in April, the OECD said.

For the G7 countries, annual headline inflation was stable at 2.9% in May.

“Food and core inflation declined slightly, while energy prices decreased year-on-year at a slower pace than in April,” the OECD said, while noting that energy inflation was up in Japan and France.

Core inflation was the main contributor to headline inflation in nearly all G7 countries, the report noted.

For the Euro area overall, headline inflation rose to 2.6% in May from 2.4% the previous month, as core inflation increased for the first time since June 2023.

Headline inflation was also up for the G20, coming in at 7.3% in May, up from 7.1% in April.