The annual inflation of the 34 Organisation for Economic Co-operation and Development (OECD) member countries dropped to 2.1 percent in May this year, decreasing compared to 2.5 percent in April, according to new figures published on July 3. The figure is the lowest rate since January 2011.
The slowdown in the annual rate of inflation was attributed to developments in energy prices in OECD countries. The inflation rate of energy prices slowed to 2 percent in May from 4.8 percent recorded in April, while the inflation in food prices decreased to 2.6 percent in May from 3.1 percent in the previous month. "Excluding food and energy, the annual inflation rate slowed down to 1.9 percent in May this year," said the OECD.
In the United States, inflation decreased to 1.7 percent in May from 2.3 percent recorded in April, while in Canada it dropped to 1.2 percent from 2.0 percent in the previous month. French inflation slowed to 2.0 percent in May from 2.1 percent in April, while inflation in the United Kingdom weakened to 2.8 percent from 3.0 percent in the previous month. In Germany, the annual inflation rate slowed to 1.9 percent compared to 2.1 percent in April. Annual inflation decelerated in Japan to 0.2 percent in May, down from 0.4 percent in April.