The annual inflation rate of the Organization for Economic Cooperation and Development (OECD) in May stood at 3.8%. This represents half a percentage point more than the reading of 3.3% for the month of April and represents the largest rise in prices in the ‘club of rich countries’ since October 2008.
The strong rebound in inflation in May has reflected the 18.6% rise in the price of energy, compared to the 16.3% rise in the previous month, while the price of food moderated its advance to 1.4%, two tenths below the rise observed in April.
Thus, by excluding the impact of food and energy price volatility, the OECD core inflation rate in year-on-year terms stood at 2.9%, compared to 2.4% in the previous month, its highest level since August 2002.
Among OECD countries, the largest year-on-year price increases in May have been in Turkey, with 16.6%, ahead of Mexico, with 5.9%, Hungary, with 5.1% and USA, with 5%.
On the contrary, the lower inflationary pressures have been observed in Japan, where prices fell 0.1% in May, as well as in Greece, with a 0.1% rise, and in Switzerland, with a 0.6% year-on-year rise in the CPI.