Inflation in leading economies slowed in April and the 12 months leading up to it as energy prices plunged amid the economic crisis, the OECD said on Wednesday. Consumer prices in the 30 states of the Organisation for Economic Co-operation and Development (OECD) rose by 0.6 percent in the 12 months to April, compared with 0.9 percent in the year to March, it said.
Month-on-month, inflation in the zone fell to 0.2 percent in April from 0.3 percent the previous month. Inflation has fallen steadily since February, after recovering from several months of falling prices. Consumer prices for energy were down by 13.3 percent in the year to April, following a fall of 11.9 percent in the year to March, it said. Excluding food and energy, consumer prices rose 1.9 percent in the year to April 2009, compared with 1.8 percent in March.
In the world's two biggest economies, the United States and Japan, prices fell overall. The US consumer price index fell 0.7 percent over the year to April and Japan's fell 0.3 percent. The consumer price index for the eurozone was "stable" in the year to April, according to the OECD, with inflation of 0.6 percent.
The prospect of a sustained fall in prices, known as deflation, causes concern since it means consumers may put off purchases in the hope of buying more cheaply later. This can undercut production and employment, setting up a vicious circle of ever decreasing economic activity.
Comments
Comments are closed.