Global inflation hits double digits: OECD

Consumer inflation hit double digit levels in June, according to the latest data from the OECD.

Annual consumer inflation for the OECD area rose to 10.3% in June from 9.7% in May, primarily due to higher food and energy prices.

“This represents the sharpest price increase since June 1988,” the group said.

Food prices were up 13.3% in June, compared with 12.6% in May, which marked the strongest rise in food prices since July 1975, the OECD reported.

Energy prices also continued to rise, with annual inflation hitting 40.7% in June, up from 35.4% in May.

Excluding food and energy, core inflation was 6.7% in June, up from 6.4% in May.

Inflation was up in all OECD countries except Germany, Japan and the Netherlands. Inflation was at double digit rates in about one third of them, led by Turkey at 78.6%.

For the G7, inflation averaged 7.9% in June, up from 7.5% in May. But core inflation in the G7 (excluding food and energy) was 4.7% in June, down from 4.8% in May.

For the G20 area, annual inflation rose to 9.2% in June, compared with 8.9% in May. The OECD reported “marked increases” in all G20 emerging markets apart from India.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.