Inflation in OECD Countries Rises to 5.9% in May, Reaches 2024 Highs

The price increase in May was mainly due to a 2.5% rise in energy costs.

The year-on-year inflation rate of the Organization for Economic Cooperation and Development (OECD) countries accelerated in May to 5.9%, up from 5.7% in April. This marks the highest price increase among advanced economies since December 2023, reflecting the higher cost of energy.

According to data published by the advanced economies’ think tank, the overall inflation rate increased in May in 18 of the 38 OECD countries and decreased in 13.

The price increase in May was primarily due to the 2.5% rise in energy costs, compared to a 0.1% decrease in April, while food prices remained stable with an annual increase of 4.8%.

Thus, the OECD’s core inflation rate, which excludes the impact of energy and fresh food, stood at 6.1% in May, one-tenth of a percentage point lower than the previous month’s reading.

The countries with the highest price increases were Turkey (75.4%), Colombia (7.2%), and Iceland (6.2%), while the lowest inflationary pressures were seen in Costa Rica (-0.1%), Latvia (0.1%), and Lithuania (0.5%).

The OECD country with the highest inflation was once again Turkey, with a year-on-year rate of 75.4% in May, up from 69.8% in April. Colombia came in second, with a 7.2% inflation rate in May, the same as the previous month.

Among the other Latin American OECD members, Chile saw a two-tenths increase in inflation to 4.2%, while in Mexico, it remained stable at 4.7%.

Costa Rica was once again the only OECD country with a negative rate (-0.3% in May, following -0.5% in April).

Expanding the focus beyond the OECD to the emerging G20 countries, the most notable situation was in Argentina with its astronomical figures: despite a slowdown from 289.4% in April, inflation remained at 276.4% in May.

In a similar upward trend to the OECD, Brazil saw a two-tenths increase in inflation to 3.9% in May.