Inflation’s Roller‑Coaster Ride in August 2023
OOPS! Inflation just can’t stay still.
- Across the OECD, the Consumer Price Index (CPI) jumped from 5.9% in July to 6.4% in August.
- Fourteen countries saw the rise accelerate, and nine of them surged by half a percent or more.
- Turkey was the fastest‑moving coaster, leaping a whopping ≈10% in a single month.
Energy Prices – The Big Party Crashers
After months of cooling, energy prices decided to turn up the heat:
- Energy inflation surged between July and August in 25 OECD countries.
- 11 of those still kept their energy price tag negative.
- Canada, France, South Korea, and Turkey put the pedal to the metal, posting over 10% jumps.
- At the same time, 22 out of 38 OECD nations maintained a negative year‑on‑year energy trend.
Food Inflation – Still Skipping, But a Tad Slower
The slow‑down on food prices was like a sluggish snail.
- It fell to 8.8% in August from 9.2% in July.
- Core inflation (excluding food & energy) stayed rock‑steady at 6.8%.
G7 Nations – A Mixed Bag of Numbers
- The headline inflation rate crept up to 4.2% from 3.9% – the first increase since October 2022.
- Canada, France and the United States each pulled a 0.5%+ boost, fueled by a sharp rise in energy costs.
- Italy hit its lowest point since January 2022, while Germany, Japan and the UK kept things steady.
- Food inflation down across the board; core Inflation dipped but not much.
Euro Area – A Balancing Act
The European Harmonised Index of Consumer Prices (HICP) hovered around 5.2% in August, a drop from 5.3% in July.
- Energy price rebounds nearly erased gains from lower food inflation.
- Eurostat’s flash estimate for September signals a 4.3% hike to the lowest point since October 2021.
- Germany saw a sharp drop in September, thanks in part to base effects and the winding down of support measures.
G20 – A Global Snapshot
- Inflation in the G20 climbed to 6.3% from 5.8% in August.
- Argentina, Brazil and Indonesia had headline rises.
- China’s inflation ticked just above zero compared to a decline in July.
- South Africa remained stablish, while India and Saudi Arabia enjoyed a mellow dip.
Bottom line: Inflation is dancing, energy is spiking, and food is creeping – all of which makes the economic scene more dramatic than a soap opera. Let’s keep an eye on the numbers because, as ever, what’s happening in the markets often feels like a blockbuster plot twist!
