Jan. inflation in OECD countries highest in 31 years

The average year-on-year inflation in Organization for Economic Cooperation and Development countries hit 7.2 percent in January, the highest since February 1991, amid rising energy prices.

Consumer prices in South Korea rose 3.6 percent in January from a year ago, marking the 29th highest among 38 OECD member countries.

The average year-on-year inflation of G-20 and G-7 nations stood at 6.5 percent and 5.8 percent, respectively, in the first month of this year.

Turkey suffered the worst inflation -- 48.7 percent in January.

On top of chronic inflation, Turkey raised its minimum wage by 50 percent, and increased gas, electricity rates, road tolls and bus fares in January.

Consumer prices in the US climbed 7.5 percent on-year in the month, propelled by surging prices of cars, energy and food, in what was the sharpest growth in 40 years since February 1982.

Such steep inflation is nudging the US Federal Reserve to speed up interest rate hikes.

The UK and Germany each posted an inflation rate of 4.9 percent.

The biggest factor behind the sharp rise in consumer prices was the soaring international prices of oil and natural gas.

Energy prices jumped 26.2 percent year-on-year in January on average in the 38 OECD countries.

While the South Korean government says the country is relatively less vulnerable to the global supply chain crisis, many point out that the OECD figure is not accurate as it does not reflect housing costs among others.

The Russian invasion of Ukraine is expected to aggravate the global inflation from March.

Since Russia invaded Ukraine in late February, international prices of oil, natural gas and grains have soared and will directly affect consumer prices. 

By Kim So-hyun (sophie@heraldcorp.com)