Headline inflation tumbled in May, but core inflation stayed stubbornly high, according to new data from the Organization for Economic Cooperation and Development (OECD).
The Paris-based OECD reported that the annual inflation rate dropped to 6.5% in May from 7.4% in April to its lowest level since the end of 2021.
For the G7, the annual inflation rate was down to 4.6% in the month, from 5.4% in the previous month, as inflation dropped in every market except for the U.K., it said.
The OECD noted that the lowest inflation rates in G7 countries were in Canada and Japan.
In the euro area, the annual inflation rate dropped to 6.1% in May from 7.0% in April. A flash estimate indicates that the rate dropped further to 5.5% in June, the OECD said.
While headline inflation has fallen sharply, core inflation (excluding food and energy prices) “declined at a much slower pace,” the OECD also reported.
In May, core inflation came in at 6.9%, down from 7.1% in April.
The OECD also said estimated services inflation declined in 18 countries, compared to 13 countries in April.
“On average [services inflation] moderated to 5.7% in May from 6.0% in April,” it said.