ANNUAL inflation in the Organisation for Economic Cooperation and Development (OECD) area rose up to 1.5 per cent in January compared to the previous month when it had been 1.2 per cent.

"Following a rebound between December, 2020 and January, 2021 the annual decline in energy prices was less pronounced in January (negative 3.9 per cent) than in December (negative 6.5 per cent), while food price inflation slowed slightly to 3.1 per cent, compared with 3.2 per cent in December," said the Paris-based organisation.

The OECD annual inflation, excluding food and energy, also increased slightly to 1.7 per cent in January, compared with 1.6 per cent in December.

In the Euro area, overall inflation increased sharply in January to 0.9 per cent, compared with negative 0.3 per cent in December. This increase was mainly caused by higher inflation for energy, and for clothing, footwear and household equipment.

In Germany the annual inflation increased sharply to 1 per cent, from negative 0.3 per cent. Part of the increase in inflation is also related to the end of a temporary reduction in the Value Added Tax (VAT) rate.

Inflation in France spiked to 0.6 per cent from none and Italy to 0.4 per cent from negative 0.2 per cent. Eurostat's flash estimate for the Euro area points to annual overall inflation remaining at 0.9 per cent in February.

Annual inflation in the G20 area as a whole increased to 2.2 per cent in January compared with 2 per cent in December. The inflation rise was more moderate in Canada where it grew by 0.3 per cent to 1 per cent, and the UK where in increased by 0.1 per cent to land at 0.9 per cent.

Inflation was stable in the US at 1.4 per cent, while in Japan overall prices continued to fall in January to negative 0.6 per cent, but at a slower pace than in December when it hit negative 1.2 per cent.

Among non-OECD G20 economies, annual inflation increased in Argentina (to 38.5 per cent from 36.1 per cent), Saudi Arabia (to 5.7 per cent from 5.3 per cent), Russia (to 5.2 per cent from 4.9 per cent), Brazil (to 4.6 per cent from 4.5 per cent) and South Africa (to 3.2 per cent from 3.1 per cent).

On the other hand, annual inflation decreased in India from 3.7 per cent to 3.2 per cent, and China to negative 0.3 per cent from 0.2 per cent.