Consumer prices in the OECD area rose by 3.2% in the year to May 2011, compared with 2.9% in April - the highest rate since October 2008. This increase was mainly driven by a sharp acceleration of inflation in Canada (to 3.7% in May, up from 3.3% in April) and the United States (to 3.6%, up from 3.2%) with high food and energy prices being the main drivers.

Consumer prices, selected areas
May 2011, percentage change on the same month of the previous year


For the OECD as a whole, the increase in food and energy prices accelerated to 3.9% and 14.2% respectively in May, compared with 3.1% and 13.8% in April.

Excluding food and energy, consumer prices rose by 1.7 % in May 2011, compared with 1.6% in April - the highest rate since July 2009.

In other major OECD economies inflation remained either stable (United Kingdom, 4.5%, Italy, 2.6% Japan, 0.3%) or slowed (2.3% in Germany down from 2.4% and 2.0% in France down from 2.1%). Euro area annual inflation (HICP) also slowed to 2.7% in May, down from 2.8%.

The picture was mixed in other major non-OECD economies. While inflation accelerated in South Africa (to 4.6%, up from 4.2%), China (to 5.5%, up from 5.3%), and Brazil (to 6.6%, up from 6.5%), it was stable at 9.6% in the Russian Federation and slowed to 8.7% in India (down from 9.4%) and 6.0% in Indonesia (down from 6.2%).

Compared to the previous month, consumer prices in the OECD area rose by 0.3% in May 2011. They rose by 0.7% in Canada, 0.5% in the United States, 0.2% in the United Kingdom, 0.1% in France, Italy, and Japan and, remained stable in Germany.