inflation at the grocery store
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Headline inflation was stable in February, according to new data from the Organization for Economic Cooperation and Development (OECD).

The annual inflation rate for the OECD area came in at 5.7% for the month, even as the rate dropped in most (75%) of the countries that report.

Food inflation continued to decline, the OECD said, while energy inflation ticked up but remained slightly negative.

Core inflation (excluding food and energy) remained high in February, coming in at 6.4%, “reflecting sticky services prices.”

Across the G7, inflation also remained stable in February at 2.9%, the OECD reported.

“Core inflation was the main contributor to headline inflation in most G7 countries,” it noted.

Within the G7, the U.K. and Germany recorded the strongest declines, while inflation increased in Japan, “reflecting a base effect, as energy prices had declined significantly in February 2023 with the introduction of energy subsidies,” the OECD said.

In the euro area, headline inflation declined to 2.6% in February from 2.8% in January.

“The decline in food inflation was about twice as large as that of the OECD, while core inflation declined at a similar pace to that of the OECD,” it noted — adding that preliminary estimates point to further declines in both headline and core inflation for March.