inflation at the grocery store / Yellow Man

Headline inflation took a further step back in October, according to new data from the Organization for Economic Cooperation and Development (OECD).

The annual headline inflation rate in the OECD dropped to 5.6% in October — its lowest level in two years — down from 6.2% in September, the Paris-based group reported.

The downward trend in headline inflation came as food inflation continued to slow rapidly, the OECD said, with the annual rate sliding to 7.4% in October from 8.1% in September.

At the same time, energy inflation in the OECD was negative in October, it said. This largely reflected base effects, as energy inflation spiked in October 2022.

Core inflation (excluding the volatile food and energy components) was “broadly stable” at 6.5% in October, the OECD also reported.

For the G7, annual headline inflation came in at 3.4% for October, down from 4.1% in September, which the OECD said marked its lowest level since April 2021.

“Food inflation and core inflation continued their downward trend. Energy prices have started to fall again in October, after having increased in September,” it noted.