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(Bloomberg) — Inflation across all advanced economies has now slowed to its lowest level since December 2021, though core price growth is showing slightly more strength, according to the Organization for Economic Co-operation and Development.
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The headline measure for the group that includes rich countries around the world fell to 6.5% in May, while the so-called core indicator that excludes food and energy stood at 6.9%. The Paris-based organization released the data on Tuesday.
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The Organization for Economic Co-operation and Development said that all but the Netherlands, Norway and the United Kingdom saw inflation slowing. In the G7, it is now at 4.6%, the lowest level since September 2021.
The numbers highlight how stubborn inflation remains even as the headline data may indicate some progress by monetary officials in getting consumer prices under control.
Policymakers around advanced economies remain in tightening mode, with both the US Federal Reserve and European Central Bank pointing to another increase in borrowing costs this month. On Tuesday, the Reserve Bank of Australia kept interest rates unchanged but kept the possibility of further increases.
The data shows divergence in the main sources of inflation across the G7. In Italy, food and energy were the main contributors to price growth in May, while in other countries in that group they were driven by so-called underlying pressures.
In the OECD club itself, inflation varies widely, from less than 3% in Costa Rica, Greece and Denmark to over 20% in Hungary and Turkey.
