Annual inflation in the OECD area increased to 2.2% in August, largely driven by an increase in food and energy prices.
According to the latest OECD Consumer Price Index, energy price inflation was at 5.9% year to date in August, compared to 3.7% the previous month. Year to date food prices increased marginally from 1.7% in July to 1.8% in August.
This trend is particularly pronounced in the US, where energy prices increased by 6.4% year on year, whilst Euro area HICP inflation of energy prices was at 4% year on year.
Overall, annual inflation levels continue to be the highest in the UK (2.9%), followed by the US (1.9%) , Germany (1.8%)
According to the OECD, annual HICP inflation in the Euro area picked up to 1.5% in August, compared to 1.3% in July. Excluding food and energy, annual inflation remained stable at 1.2%.