Consumer prices in the OECD area rose by 3.1% in the year to July 2011, compared with 3.0% in the year to June. The broad stability in the headline rate partly reflects offsetting movements in energy and food prices. Energy prices rose 13.5% in the year to July, slightly down from the 13.6% recorded in June, while food prices rose by 4.5%, up from 4.1% in the year to June. Excluding food and energy, the annual inflation rate rose by 1.7% in July, compared with 1.6% in June.

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



As a consequence of a benchmark revision, Japan showed continued deflation in the first half of 2011. In July, the annual inflation rate was positive at 0.2%, up from -0.4% in June. However, prices excluding food and energy continued to contract (-0.4% in the year to July).

Inflation continued to decline in the year to July in Canada (to 2.7%, down from 3.1% in June and 3.7% in May), and also declined slightly in France (to 1.9%, down from 2.1%). Annual inflation edged up in the United Kingdom (to 4.4%, up from 4.2%) and in Germany (to 2.4%, up from 2.3%). Annual inflation was stable in the United States (at 3.6% for the third consecutive month) and Italy (2.7%). Euro area annual inflation (HICP) was 2.5% in July, compared with 2.7% in June.

Annual inflation in China was slightly upwards: 6.5% in July (compared to 6.4% in June) - the highest rate since June 2008. Brazil and South Africa showed higher price increases, whereas annual inflation slowed in India, Indonesia and the Russian Federation.

Compared to the previous month, consumer prices in the OECD area remained stable in July 2011. They rose by 0.4% in Germany, 0.3% in Italy, 0.2% in Canada and 0.1% in the United States. They were stable in Japan and the United Kingdom but fell by 0.4% in France.