Falling food and energy prices are contributing to slowing or stable inflation in most Organisation of Economic Cooperation and Development (OECD) countries.
Year-on-year for the last quarter of 2014, consumer price increases dropped to 1.1% from 1.5% – entirely due to a 6% drop in energy costs.
Food and the prices of other goods and services remained stable, said the OECD report.
The Eurozone dropped into deflation at -0.2%, while Eurostat, the European Union’s official statistical body expects the rate to bottom out at -0.6%.
Inflation hot spots were the Russian Federation (up 11.4%), Indonesia (up 8.4%) and India (up 5.9%).
Deflation scare
The next OECD inflation report is expected in March.
The OECD membership includes all European Union countries plus other leading developed economies worldwide.
Generally, for most developed countries, the OECD reports inflation is at a five-year low following the downturn.
“Inflation is a big problem for this year,” said an OECD spokesman. “Low inflation or even deflation could impact on the economic recovery in many countries, leading to a drop in demand for goods and services.”
| OECD Consumer Prices - December 2014 | ||||
|---|---|---|---|---|
| State | All | Food | Energy | Other |
| OECD | 1.1 | 2.5 | -6.3 | 1.8 |
| G7 | 0.8 | 2.4 | -7.3 | 1.6 |
| EU | -0.1 | -0.8 | -5.8 | 0.8 |
| Eurozone | -0.2 | -0.6 | -6.3 | 0.8 |
| Australia | 1.7 | 1.9 | -5.5 | 2.4 |
| Austria | 1 | 1 | -6.7 | 1.9 |
| Belgium | -0.4 | -0.9 | -9.4 | 1.3 |
| Canada | 1.5 | 4.2 | -6.4 | 2.2 |
| Chile | 4.5 | 8.9 | -2 | 4.3 |
| Czech Republic | 0.1 | -0.5 | -4.3 | 0.6 |
| Denmark | 0.3 | -0.7 | -3.7 | 1 |
| Estonia | -0.5 | -0.4 | -5.0 | 0.8 |
| Finland | 0.5 | -1 | -6.4 | 0.7 |
| France | 0.1 | -0.6 | -4.4 | 0.8 |
| Germany | 0.2 | -0.6 | -6.6 | 1.3 |
| Greece | -2.6 | -1.2 | -10.4 | -1.4 |
| Hungary | -0.9 | -1 | -7.7 | 1.3 |
| Iceland | 0.8 | -1 | -4.5 | 1.7 |
| Ireland | -0.3 | -2.6 | -5.5 | 0.8 |
| Israel | -0.2 | -4.5 | -3.8 | 1 |
| Italy | 0 | -0.2 | -5.4 | 1 |
| Japan | 2.4 | 3.2 | 2.8 | 2.1 |
| South Korea | 0.8 | 2 | -5.0 | 1.4 |
| Luxembourg | -0.6 | -1.1 | -10.7 | 1 |
| Mexico | 4.0 | 6.6 | 6.4 | 3.1 |
| Netherlands | 0.7 | 0 | -4.5 | 1.5 |
| New Zealand | 0.8 | 0.1 | 0 | 0 |
| Norway | 2.1 | 2.4 | -3 | 3.1 |
| Poland | -0.9 | -3.2 | -2.9 | 0.9 |
| Portugal | -0.4 | -0.4 | -6.3 | 0.3 |
| Slovakia | -0.1 | -0.7 | -1.6 | 0.5 |
| Slovenia | 0.2 | -1.2 | -4.0 | 1.3 |
| Spain | -1 | -0.3 | -8.5 | 0.1 |
| Sweden | -0.3 | 1.5 | -5.4 | 0.9 |
| Switzerland | -0.3 | 0.2 | -7.2 | 0.2 |
| Turkey | 8.1 | 12.7 | -3.8 | 8.6 |
| United Kingdom | 0.5 | -1.7 | -5.8 | 1.3 |
| United States | 0.8 | 3.7 | -10.6 | 1.6 |
| Source: OECD | ||||
