OECD inflation hits highest level in 25 years; Space race could fuel global tensions, WEF warns – business live | Business

Inflation in the OECD area reached its highest level in 25 years as consumers around the world were hit by the falling cost of living.

Consumer prices in the 38 richest countries that make up the OECD jumped 5.8% per year in November, the highest since May 1996.

Energy prices were the main driver, rising 27.7% in the OECD area in the year ending in November. This is a sharp jump from October’s 24.3% rate.

The rise in food prices in the OECD area jumped to 5.5% per year in November, from 4.6% in October.

The OECD says:

Excluding food and energy, OECD year-on-year inflation rose more moderately, to 3.8%, from 3.5% in October, although it contributed significantly to headline inflation in a number of areas. big savings.

Inflation has particularly increased in the United States, where the CPI index reached 6.8% in November, the highest in nearly 40 years, prompting the US Federal Reserve to raise interest rates several times this year.

OECD inflation rate Photograph: OECD

Inflation in Germany has hit 5.2%, a 29-year high, which may have prompted new Bundesbank President Joachim Nagel to call for vigilance over eurozone inflation this morning .

In the UK, the CPIH (consumer price index including owner-occupied housing) jumped to 4.6%, which is the measure used by the OECD. The CPI index, targeted by the Bank of England, hit 5.1%, prompting the UK central bank to raise interest rates last month.

The 38 members of the OECD are: Germany, Austria, Australia, Belgium, Canada, Chile, Colombia, Costa Rica, Czech Republic, Denmark, Estonia, Finland, France, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan , Korea, Latvia, Lithuania, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom and United States.

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