Inflation across the OECD area has hit its highest level in 25 years, as consumers across the world are hit by the cost of living squeeze.
Consumer prices in the 38 richer countries which make up the OECD surged to 5.8% per year in November, the highest since May 1996.
Energy prices were the primary factor, soaring by 27.7% in the OECD area in the year to November. That was a sharp jump on October’s 24.3% rate.
Food price inflation in the OECD area jumped to 5.5% per year in November, up from 4.6% in October.
The OECD says:
Excluding food and energy, OECD year-on-year inflation rose more moderately, to 3.8%, compared with 3.5% in October, though it contributed significantly to headline inflation in a number of large economies.
Inflation rose particularly sharply in the US, where the CPI index hit 6.8% in November, the highest in almost 40 years, putting pressure on the US Federal Reserve…