OECD Inflation: A Slippery Ride Down the Seat of the Economy
Hold onto your wallets! In February 2025, the OECD’s Consumer Price Index (CPI) jogged to 4.5% YoY, easing from January’s 4.7%—a tiny but welcome relief for anyone bracing for high prices.
- 15 out of 38 OECD countries saw inflation drop.
- Another 15 stayed pretty steady.
- Only 8 joined the growth party, with Estonia and Norway leading the charge, each leaping over a 1.0 pp increase.
Energy & Food: The Two Big Players
Energy inflation, the usual villain, shrank to 3.6% in February from 4.0% in January. 23 countries lost a few points, while 12 made the opposite move.
Food prices played a mixed game. Surprisingly, the OECD’s aggregate food inflation hovered in calm waters—stable, despite 24 nations seeing hikes and just 6 dropping their rates. A standout moment: Türkiye yanked its food inflation down by a whopping 6.7 pp.
Core inflation—excluding food and energy—remained on a relatively flat track.
G7 & Beyond: Quick Glimpses
The G7’s headline inflation eased from 2.9% to 2.7%. France championed the decline thanks to a 15% drop in regulated electric tariffs.
Japan, however, hugged a slight dip after three months of rises—energy inflation keeps it as the G7’s highest buckle.
- Britain’s and the US’s inflation both dropped 0.2 pp.
- Canada saw a 0.7 pp rise, blamed on the end of tax perks for food, drinks, and books.
Except for Japan, core inflation was the main engine driving headline numbers across G7. In Japan, food accounted for over half of the YoY headline inflation.
Eurozone Snapshot
The euro area’s HICP fell to 2.3% from 2.5%, largely thanks to softer energy prices. Flash estimates suggest it held steady at 2.2%—though that masks diversities: Finland, Ireland, Italy, and Lithuania nudged up, while Germany and others dipped into double‑digit declines.
G20 Glance
Inflation dropped to 4.3% in February from 4.8%, touching its lowest point since May 2021.
- China’s negative inflation (-0.7%) spotted a base effect from Lunar New Year timing.
- Indonesia and India hovered near zero.
- Argentina kept soaring past 60%, though slightly lower.
- Brazil jumped, while Saudi Arabia and South Africa settled back into form.
Stay tuned for the next update—keep your budget on your side!
