Inflation Rises To 10.3% In June 2022 – OECD
Inflation Driven by Further Increases in Food and Energy Prices
The Organization for Economic Cooperation and Development (OECD) in August 2022 released updated figures about inflation across the OECD area.
According to the OECD, the consumer price index (CPI) rose to 10.3% year-on-year in June 2022, after 9.7% in May 2022. This is the largest price increase since June 1988. Year-on-year inflation, again impacted by rising food and energy prices, increased in all countries except Germany, Japan, and the Netherlands. About one-third of OECD countries recorded double-digit inflation, with the highest rate in Turkey (78.6%). The lowest rate was recorded in Japan (2.4 percent).
Food price inflation in the OECD area continued to rise sharply to 13.3% in June 2022, after 12.6% in May. This is the highest increase in food prices since July 1975. Energy price inflation also rose sharply to 40.7% year-on-year in June 2022, after 35.4% in May. Excluding food and energy, year-on-year inflation rose to 6.7% in June 2022, after 6.4% in May 2022.
The G7 recorded an increase in headline inflation in June to 7.9% y/y, after 7.5% in May. The largest increase was in Italy (1.1 percentage points), followed by France (0.6 percentage points).
Energy prices remained the main contributor to inflation in Germany, France, Italy, and Japan, while inflation excluding food and energy was the main driver of inflation in the United States and the United Kingdom. In the G7 countries, inflation excluding food and energy fell slightly year-on-year to 4.7 percent, after 4.8 percent in May 2022.
In the euro area, headline inflation measured by the Harmonized Index of Consumer Prices (HICP) increased to 8.6 percent year-on-year in June 2022, after 8.1 percent in May 2022. Strong increases in food and energy price inflation were recorded between May and June 2022. Eurostat’s flash estimate for the euro area in July 2022 shows a further increase in year-on-year headline inflation (to 8.9%), as well as inflation excluding food and energy (4.0%, after 3.7% in June 2022).
Inflation in the G20 countries rose to 9.2% y/y in June 2022, after 8.9% in May 2022, with sharp increases in all G20 emerging market economies except India.
More detailed information will be provided as soon as the OECD makes it available.