05/05/2020 - Annual inflation in the OECD area slowed significantly to 1.7% in March 2020, compared with 2.3% in February, the largest deceleration since the financial crisis, as energy prices fell by (minus) 3.6% in March following a rise of 2.3% in February. Food price inflation, on the other hand, increased to 2.4% in March, from 2.0% in February. Excluding food and energy, OECD inflation was broadly stable at 2.1 % in March, compared with 2.2% in February.
Estimates for the OECD area in April are not currently available but Eurostat’s flash estimate1 for the Euro area points to inflation continuing to slow (to 0.4% compared to 0.7% in March) on the back of further falls in energy prices.
1. Eurostat note: “Data collection for HICP has been affected by the COVID-19 crisis in all euro area countries. Eurostat and the Member States’ national statistical institutes have agreed a set of procedures to estimate prices that could not be collected due to mobility restrictions or closures of outlets. All information about these procedures is available on the Eurostat website section on inflation.”
Source: Consumer price indices, OECD