The Organisation for Economic Co-operation and Development (OECD) released its 2024 year-end inflation report. Colombia leads the OECD with the highest inflation rate at 5.2%, outpacing Iceland and Poland at 4.7%.
The report reveals that while inflation in the OECD countries dropped to 5.2% by the end of 2024, a decrease of 1.6 percentage points from 2023, the cost of living still varies widely among member nations.
Eighteen countries saw an increase in living costs in December, with Latvia, Costa Rica, Hungary, Lithuania, and Japan experiencing rises of 0.7 percentage points or more.
Conversely, inflation decreased in eight countries, notably in Turkey where it fell by 2.7 points. Inflation remained stable in twelve nations. Despite the uptick in 18 countries, analysts like Sebastián Trujillo view the report optimistically.
He notes, “The OECD report suggests a global decrease in inflation, which is positive news. Central banks’ efforts are showing results, though inflation varies by country due to different economic conditions.”
Among the countries with the highest inflation rates, the Netherlands, Estonia, Japan, Latvia, and Belgium follow. The seven largest economies saw an inflation rate of 2.7%, while the European Union and the eurozone recorded rates of 2.6% and 2.4% respectively.
OECD Inflation Trends
The OECD identified energy price increases as a primary driver of inflation, though this was somewhat offset by a slight decline in core inflation, which excludes food and energy. Food inflation remained stable.
John Torres, an economic analyst, warns, “Although inflation is slowing in the OECD, increases in 18 countries indicate stabilization isn’t solid yet. Global factors like protectionist policies and commodity prices could hinder further decreases.”
In Colombia, where the inflation target is 3%, the discrepancy stands at 2.2 points. According to DANE’s December report, the annual inflation rate was 5.2%, down from 9.46% the previous year.
Education, restaurants, hotels, and utilities were the sectors with the most significant price increases. Piedad Urdinola, Director of DANE, pointed out, “Housing and public services contribute the most to inflation, followed by restaurants, hotels, and transportation.”
In the G20, inflation fell to 5.1% in December from 5.7% in November, the lowest since September 2021. Countries like Argentina saw notable decreases, while Brazil and others maintained stable, near-zero inflation rates.
In the eurozone, inflation slightly rose to 2.4% in December from 2.2% in November. Energy inflation neared zero after months of decline, with food and core inflation holding steady.
This comprehensive look at inflation across the OECD highlights ongoing economic adjustments and the varied impact of global economic policies.
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