Year-on-year inflation in the OECD, as measured by the Consumer Price Index (CPI), remained stable at 5.7 per cent in February 2024, hovering at 6 per cent since May 2023.

In the euro area, year-on-year inflation as measured by the Harmonised Index of Consumer Prices (HICP) continued to decline to 2.6 per cent, following a figure of 2.8 per cent in January. Food inflation in the euro area declined for the fifteenth consecutive month, reaching 5.3 per cent.

In March, Eurostat’s flash estimate pointed to a decline in euro area headline (to 2.4 per cent) and core inflation (to 2.9 per cent), with a slowing decline in energy prices.

Headline inflation fell in three-quarters of OECD countries with the largest decreases recorded in Poland and Sweden and the largest rise in Turkey.

Headline inflation was below 2 per cent in seven OECD countries and remained negative in Costa Rica.

Core inflation (inflation less food and energy) in the OECD declined but remained high at 6.4 per cent reflecting sticky services prices.

Headline inflation in China turned positive for the first time since August 2023 which partly drove G20 year-on-year inflation to 6.9 per cent in February compared to 6.4 per cent in January, its highest level since March 2023.

---