OECD area inflation spikes to 3-decade high in December 2021

ISTANBUL

Annual inflation in the Organization for Economic Co-operation and Development (OECD) area spiked to a 30-year high in December 2021.

The inflation rate climbed to 6.6% – the highest level since July 1991 – from 5.9% in November and 1.2% in December 2020, according to OECD data released on Thursday.

“This increase was driven in part by a surge in annual inflation in Turkey (to 36.1% in December, after 21.3% in November),” read an OECD statement.

“Excluding Turkey, inflation in the OECD area increased more moderately (to 5.6%, after 5.3% in November).”

In December 2021, energy prices jumped by 25.6% compared to December 2020, while food prices soared by 6.8% over the same period, the OECD said.

“Excluding food and energy, OECD year-on-year inflation also rose sharply, to 4.6%, compared with 3.9% in November,” the statement added.

For 2021 as a whole, the inflation rate was 4%, the highest level since 2000, rising from 1.4% in 2020.

Energy prices in the region surged by 15.4% on an annual basis last year.