The annual inflation rate slowed to 2.9% in December in the OECD area, according to the latest data from the Organization for Economic Co-operation and Development.
The OECD reports that consumer prices in the OECD area slipped from 3.1% in November. “This easing in the annual rate of inflation mainly reflected the slower growth in energy prices, which increased by 8.1% in the year to December, down from 11.6% in the year to November — the lowest annual rate since November 2010,” the OECD says.
Food prices were a little stronger, rising by 4.4% in the year to December, compared with 4.1% in the year to November. Excluding food and energy, the annual inflation rate was stable at 2.0% in December
Annual inflation slipped in Canada (to 2.3% down from 2.9% in November). It also slowed in the United States (to 3.0% down from 3.4%) and Germany (to 2.1% down from 2.4%). For Japan, consumer prices fell by 0.2% in the year to December; the third straight month of decline. In Europe, annual inflation remained stable in France, and Italy, and decelerated sharply in the UK.
On a month-over-month basis, consumer prices in the OECD area rose by 0.1% in December. They rose by 0.7% in Germany, 0.4% in France, Italy and the UK. They were stable in Japan, and decreased by 0.2% in the U.S. and by 0.6% in Canada.