Home Business News Energy prices cause sharpest slowdown in inflation since the financial crisis

Energy prices cause sharpest slowdown in inflation since the financial crisis

by LLB Reporter
6th May 20 7:04 am

Annual inflation in the OECD area slowed significantly to 1.7% in March 2020, compared with 2.3% in February, the largest deceleration since the financial crisis, as energy prices fell by (minus) 3.6% in March following a rise of 2.3% in February.

Food price inflation, on the other hand, increased to 2.4% in March, from 2.0% in February. Excluding food and energy, OECD inflation was broadly stable at 2.1 % in March, compared with 2.2% in February.

Estimates for the OECD area in April are not currently available but Eurostat’s flash estimate for the Euro area points to inflation continuing to slow (to 0.4% compared to 0.7% in March) on the back of further falls in energy prices.In March 2020, annual inflation slowed in all major economies except Japan where it was stable at 0.4%. Annual inflation decreased sharply in Canada (to 0.9% in March, from 2.2% in February), the United States (to 1.5%, from 2.3%), France (to 0.7%, from 1.4%), and more moderately in Germany (to 1.4%, from 1.7%), the United Kingdom (to 1.5%, from 1.7%) and Italy (to 0.1%, from 0.3%).

Annual inflation in the Euro area, as measured by the HICP, also decreased sharply (to 0.7%, from 1.2%) but more moderately, when excluding food and energy (1.0%, from 1.2%).

Among non-OECD G20 economies, annual inflation decreased in Argentina (to 48.4%, from 50.3%), India (to 5.5%, from 6.8%), China (to 4.3%, from 5.2%), Brazil (to 3.3%, from 4.0%), South Africa (to 4.1%, from 4.5 %), and Indonesia (to 3.0%, from 3.1%). Inflation increased in Saudi Arabia (to 1.5%, from 1.2%) and the Russian Federation (to 2.5%, from 2.3%). Annual inflation in the G20 area as a whole also decreased to 3.2% compared with

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