Price increases in OECD countries slowed in October to the weakest in two years, in a sign that advanced economies are overcoming their worst inflation crisis in decades. 

The headline measure for the 38-member club, which includes all Group of Seven economies, dropped to 5.6 per cent from 6.2 per cent in September as food-cost pressures lessened rapidly and energy prices fell back in most countries.

The OECD reading for October follows data in many individual countries showing inflation has since decelerated further. That, combined with signs of economic weakness in the euro area in particular, has prompted to investors to bet that central banks will ease their monetary policies sooner than they had initially telegraphed. 

The Paris-based organisation said 28 countries saw declines in inflation rates in October. Core price growth, which is closely watched by central banks, was broadly stable at 6.5 per cent, although it continued to decline in the G7. BLOOMBERG