OECD annual inflation down to 1.9% in July

PARIS?- Annual inflation rate in the OECD area rose by 1.9 percent in the year to July, down from 2 percent in the year to June 2012 due to slower growth in energy and food prices, the Paris-based Organization for Economic Cooperation and Development (OECD) said in its latest monthly report Tuesday.

In July 2012, energy price inflation saw a continued downward trend, slipping to 0.7 percent from 1.4 percent in June. Food price inflation went down from 2.8 percent in June to 2.3 percent in July, the lowest rate since Sept 2009, according to the report.

OECD figures showed that excluding food and energy, the annual inflation rate remained unchanged at 1.8 percent in July 2012.

In the 34-nation bloc, Japan saw a continued fall in inflation by minus 0.4 percent. While annual inflation slowed sharply in the United States to 1.4 percent, it fell more moderately in Canada to 1.3 percent, and in Italy to 3.1 percent.

Annual inflation in July remained stable in France at 1.9 percent and in Germany at 1.7 percent. In Britain, however, it increased to 2.6 percent.

The report indicated that euro area annual inflation remained stable at 2.4 percent in July for the third consecutive month.

OECD data showed annual inflation continued to decelerate in South Africa to 5 percent, in China to 1.8 percent and in India to 9.8 percent.

By contrast, annual inflation accelerated sharply in Russia to 5.6 percent, more moderately in Brazil to 5.2 percent and in Indonesia to 4.6 percent.