Year-on-year inflation in the OECD as measured by the Consumer Price Index (CPI) declined in June 2024, to 5.6 per cent from 5.9 per cent in May.

It is the lowest level since October 2021, although a similar rate of 5.7 per cent has been achieved several times since the beginning of 2024. Headline inflation declined in 24 of 38 OECD countries and stood below 2 per cent in nine countries in June as opposed to six in May.

By contrast inflation remained above 5 per cent in Colombia and Iceland, and above 70 per cent in Türkiye. OECD inflation excluding Turkey is estimated to have declined to 2.9% in June, from 3.1% in May.

In the euro area, year-on-year inflation as measured by the Harmonised Index of Consumer Prices (HICP) was broadly stable at 2.5 per cent in June as compared with 2.6 per cent in May. It has hovered between 2.4 per cent and 2.9 per cent since October 2023.

Based on HICP, three euro area countries (Lithuania, Italy and Finland) registered headline inflation at or below 1 per cent, while it stood at 3 per cent or above in five others (Belgium, Spain, the Netherlands, Austria, and Portugal).

Core and energy year-on-year inflation were also broadly stable, while food inflation declined slightly. In July 2024, according to Eurostat’s flash estimate, year-on-year inflation remained broadly stable in the euro area, at 2.6 per cent, with unchanged core inflation while energy inflation rose to 1.3 per cent from 0.2 per cent in June.

---