OECD inflation in May drops to 17-month low

By Tuba Ongun

ANKARA (AA) - Annual consumer inflation in the Organization for Economic Cooperation and Development (OECD) area fell to a 17-month low in May, mainly owing to declining energy prices, according to data released on Tuesday.

Consumer prices rose 6.5% year-on-year in May, the slowest hike since December 2021, data from the Paris-based organization showed, with headline inflation slowing from 7.4% in April.

Energy prices dropped 5.1% from a year ago in May, after rising 0.7% in April, while food inflation eased to 11% in May from 12.1% in the previous month.

Compared to April, annual inflation dropped in all OECD countries except the Netherlands, Norway, and the UK.

Core annual inflation, excluding food and energy, dropped to 6.9% in May, cooling from April's 7.1%.

Across OECD nations, inflation rates ranged from less than 3% in Costa Rica, Greece, and Denmark, to more than 20% in Hungary and Türkiye.

On the Group of Seven (G-7) side, annual inflation decreased to 4.6% in May, its lowest level since September 2021.

The lowest inflation rates among G-7 countries were in Japan and Canada, both below 3.5%.

Annual inflation in the euro area dove to 6.1% from 7% over the same period.

In the Group of 20 (G-20) nations, consumer price rises eased to 5.9% year-on-year in May from April's 6.5% hike.