The OECD released the following press release:

Ireland, once again, had the highest deflation of any country in the OECD.

According to the Consumer Price Index (CPI), prices fell by 5% on average in the year to December 2009. By another measure, the Harmonised Indices of Consumer Prices (HICP), prices fell by 2.6%.

HICP excludes owner-occupied housing, and much of the difference between the two figures can be accounted for by the fall in house prices in Ireland.

Deflation may be good news for consumers, but it reduces the gains to producers and also increases the real burden of debt.

Food prices fell the furthest, by just over 8%, while energy prices actually rose by 2.4%. The prices of other items fell by just over 5% on average.

In the United Kingdom prices rose across the board, with general inflation reaching a suprisingly high 2.9%.

In the European Union prices rose by 1.4%, while in the smaller Eurozone i