OECD inflation up for first time in a year

The annual inflation rate in developed countries rose for the first time in a year in August, largely driven by a sharp acceleration in energy prices and an easing in food prices.

This is according to a new report from the Organisation of Economic Cooperation and Development (OECD), which revealed that the annual inflation rate rose by two per cent in the year to August 2012, compared with a 1.9 per cent increase in the year to July. Excluding food and energy prices, the OECD inflation would only have increased by 1.6 per cent in August.

A significant number of Euro-zone countries accounted for the overall increase, with an annual inflation of 2.6 per cent in August - particularly high inflation rates were recorded in Turkey and Hungary. This is followed by the United Kingdom, up 2.5 per cent, and the United States, also up 1.9 per cent.

The change in Australia's Consumer Price Index (CPI) was 1.2 per cent, relatively low in comparison to the rest of the OECD economies.

The report also noted that outside the OECD, annual inflation was particularly high in India at 10 per cent in the 12 months to August, while Russia and South Africa recorded more than five per cent inflation over the same period. China, Australia's biggest trading partner, recorded two per cent inflation.

The report can be accessed here.

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