PARIS: Inflation in advanced democracies slowed in the year to July but was well above the eurozone level now flirting with deflation, OECD data showed on Tuesday.

Inflation across the OECD 34 members was 1.9 per cent in the year to July from 2.1pc in June.

This is a sharp fall from one month to the next, but still leaves inflation around the level of 2pc which central banks in advanced economies consider to be appr­opriate for ensuring reasonable price stability.

“This slowdown in the annual rate of inflation was mainly driven by lower energy prices,” the Organisation for Econo­mic Cooperation and Development said in a monthly estimate.

Published in Dawn, September 3rd, 2014