In January 2025, inflation within the Organisation for Economic Co-operation and Development (OECD) countries remained steady at 4.
7%, matching the levels recorded in November and December 2024. The data highlights the persistence of inflationary pressures across developed economies, with varying impacts from country to country.
While inflation stayed consistent at the OECD level, there were notable regional differences. In some countries, inflation accelerated, largely driven by fluctuations in energy prices and the winding down of government price-support measures. Countries like Austria, Belgium, and Luxembourg experienced marked increases due to the rising cost of energy, which surged after the end of price subsidies aimed at shielding consumers. On the other hand, in countries like Australia, energy inflation showed a significant decline, thanks to the easing of energy prices in recent months.
Core inflation, which excludes volatile food and energy prices, held steady at 4.
8%, reflecting persistent price pressures across most sectors. This stability in core inflation suggests that, despite fluctuations in energy and food costs, broader underlying inflation remains a challenge for policymakers.
Energy inflation, which had been a major contributor to overall inflation in recent years, rose slightly to 4.0% in January 2025. The energy sector saw mixed results across different OECD countries. In Turkey, for example, energy inflation continued to climb steeply, contributing to an overall inflation rate above 40%. In contrast, energy inflation in Australia and some other countries showed signs of moderation, reflecting changes in global energy markets and domestic policy adjustments.
Among the major economic groups, inflation in the G7 countries was stable at 2.9%, while inflation in the Euro area increased marginally to 2.5%. This disparity underscores the uneven economic recovery and varying inflationary pressures experienced by different countries.
At the global level, inflation in G20 nations also remained stable at 5.0%, pointing to persistent inflationary challenges worldwide.
Overall, the continued high inflation within the OECD signals ongoing economic challenges, with rising energy costs and underlying price pressures likely to remain significant issues for policymakers throughout 2025.
