OECD area inflation slows further in December 2022

ANKARA

The annual consumer inflation in the Organization for Economic Cooperation and Development (OECD) area slowed to 9.4% in December from 10.4% in November last year, according to data from the international group on Tuesday.

This was the lowest level since April 2022 thanks to a sharp fall in energy inflation in most OECD countries, the Paris-based organization noted.

Energy prices surged 18.8% year-on-year in December, easing from a 23.8% increase in November.

Double-digit inflation was recorded in 15 of 38 OECD countries in December, with the highest inflation rates recorded in Hungary, Latvia, Lithuania, and Türkiye (all above 20%).

OECD inflation in 2022 was more than double its 2021 level reaching 9.6%, the highest annual average rate since 1988.

Core inflation, excluding food and energy, in the OECD area also fell to 7.2%, partially driven by pronounced falls in Türkiye.

In December 2022, inflation dropped in all G7 countries except for Japan.

The largest decline was seen in Germany, reflecting a one-off subsidy on gas bills.