OECD annual inflation slows sharply to 0.9% in April 2020 but steep rise in food prices
Annual inflation in the OECD area continued to slow sharply to 0.9% in April 2020, compared with 1.7% in March and 2.3% in February. Energy prices plunged by 12.2% in April, following the 3.7% drop in March; the largest fall since September 2015. By contrast, food price inflation climbed sharply to 4.2% in April, from 2.4% in March, the largest annual increase since January 2012.
Excluding food and energy, OECD inflation also slowed sharply to 1.6% compared with 2.1% in March. This is the lowest rate of inflation excluding food and energy in the OECD area since February 2014.
Estimates for the OECD area in May are not currently available but Eurostat’s flash estimate for the Euro area points to inflation continuing to slow (to 0.1% compared to 0.3% in April) on the back of further falls in energy prices.