OECD Energy Prices Surge on Middle East War Fallout, Rising 8.6 Percentage Points in a Month

Yonhap News Agency [Financial News] As international energy prices have surged again after the Arab-Israeli conflict, inflationary pressure in member countries of the Organisation for Economic Co-operation and Development (OECD) is expanding rapidly. In particular, the increase in energy prices in March was the third-largest since related statistics began.
0% in March. 6 percentage point in March.
The report cited rising global oil and energy prices caused by armed conflict in the Middle East as the main factor. In fact, consumer price inflation rose from the previous month in 33 of the 37 member countries, where monthly data were available.
Volatility was especially pronounced in the energy sector. 1% in March from a year earlier. 5% in the previous month. It was the largest increase since April 2021 and the third-largest since the statistics began in 1971.
6 percentage points in the wake of the Global Financial Crisis (GFC). At the time, the rebound in economic activity after a sharp drop in global oil prices amplified the base effect.
The OECD said the shock is not limited to any one country and is being felt broadly. Among the 35 member countries with energy price data, inflation accelerated in 32, and seven of them posted double-digit gains.
The Group of Seven (G7) showed a similar trend. 2% over the same period.
1%. Analysts said government fuel tax cuts and policies to stabilize petroleum product prices likely had some effect.
However, there are concerns that if the rise in international energy prices continues for a prolonged period, domestic inflationary pressure could also intensify. Higher raw material prices and transportation costs could spread into broader living costs.

banaffle@fnnews.com Yoon Hong-jip Reporter