OECD area inflation eases to 1.8 per cent

AFP, Thursday 6 Jan 2011

Declining energy prices were behind the recent ease in inflation rates in advanced economies, according to OECD

OECD announces that the inflation level in the advanced economies decelerated due to the slowing energy prices, excluding food prices. (photo: Reuters)

Inflation in advanced economies eased to 1.8 per cent in November from 1.9 per cent in October, the OECD announced on Thursday, saying the decrease was mostly the result of a slowing rise in energy prices.

Excluding volatile food and energy prices, 12-month consumer price inflation rose to 1.2 per cent in November, up from 1.1 per cent in October. Inflation in the United States eased to 1.1 per cent in November, from 1.2 per cent in October. In Japan, inflation eased to 0.1 per cent in November, from 0.2 per cent in October, which was the first positive reading in 20 months.

Inflation also eased in Canada, to 2.0 per cent from 2.4 per cent in October, which was its fastest rate of price increases since October 2008.

In Britain, inflation rose to 3.3 per cent in November from 3.2 per cent the previous month. In the eurozone, 12-month inflation remained stable at 1.9 per cent, which is the same as the reading from the European Union's statistics agency, Eurostat.

In Germany inflation accelerated to 1.5 per cent from 1.3 per cent in October, according to OECD, but remained stable in France with 1.6 per cent and Italy with 1.7 per cent.

The data provided by the Organization for Economic Cooperation and Development covered all 34 of its members.

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