Advanced economies have survived a "near-perfect storm" in financial markets remarkably well, the Organisation for Economic Cooperation and Development said on Wednesday, as it predicted recoveries in the US and European economies next year without inflation taking root.

In its twice-yearly Economic Outlook, the Paris-based international organisation revised down its forecasts of growth and now thought inflation would be higher than in December, a result of more expensive energy and food, which would squeeze real incomes and raise prices across the developed world.