THE consumer prices inflation in the OECD area remained stable at 1.2 per cent in December, for the third consecutive month, said the Organisation for Economic Cooperation and Development (OECD).

Energy prices declined 6.5 per cent, a slower pace than in November when they fell 8.1 per cent, it said. Meanwhile, food price inflation slowed to 3.2 per cent, compared with 3.4 per cent in the previous months.

"OECD annual inflation excluding food and energy, remained almost stable, for the third consecutive month, at 1.6 per cent in December 2020," the international body said.

In December, annual inflation was stable in Germany and Italy at negative 0.3 per cent and negative 0.2 per cent respectively. It slowed in Canada to 0.7 per cent and France to 0.0 per cent, while picking up in the United Kingdom to 0.8 per cent from 0.6 per cent and the United States by 0.2 per cent.

In Japan, overall prices continued to fall in December reaching an annual rate of negative 1.2 per cent, the lowest rate since April 2010.

In the Euro area, annual inflation and inflation excluding food and energy, both remained stable for the fourth consecutive month in December at negative 0.3 per cent and 0.2 per cent respectively.

"Eurostat's flash estimate for January 2021 points to a sharp increase in overall inflation as well as in inflation excluding food and energy, to 0.9 per cent and 1.4 per cent, respectively," the OECD said, pointing to an acceleration in the Euro area.

Annual inflation in the G20 area as a whole was stable at 2 per cent in December.

Among non-OECD G20 economies, annual inflation decreased in India to 3.7 per cent, from 5.3 per cent, Saudi Arabia to 5.3 per cent from 5.8 per cent and South Africa by 0.1 percentage point.

On the other hand, annual inflation increased in Argentina to 36.1 per cent from 35.8 per cent, China to 0.2 per cent from negative 0.5 per cent, and Russia to 4.9 per cent from 4.4 per cent.