PARIS / RankWire.AI / – In June 2026, inflation across OECD nations slowed down to 4.2%, down from 4.6% in May. This decrease marked the end of three straight months of increasing headline inflation. Consumer prices grew more slowly in 20 member countries, while six saw a rise. In 12 economies, inflation remained stable or largely so. Among OECD members, nine recorded rates of 2% or less, with three countries experiencing inflation below 1%.
The most significant change in the overall inflation figure was driven by lower energy prices. Annual energy inflation dropped by four percentage points to 11.7%, from 15.8% in May. Data shows energy price growth declined in 24 of the 37 reporting countries, increased in 10, and six nations maintained rates above 15%. Despite the slowdown in June, energy remained a key factor in consumer price pressures.
Both food and core inflation also decreased during the month. Food inflation eased by 0.2 percentage points to 3.4%, while core inflation, excluding food and energy, fell by the same margin to 3.6%. These figures indicate a slowdown in price increases across several major categories of consumer spending. A lower inflation rate signifies that prices continue to rise but at a slower pace annually than before.
Energy Price Reduction Contributes to G7 Inflation Drop
In June, headline inflation across the G7 countries decreased to 3.0% from 3.5% in May, largely due to a 5.2 percentage point decrease in energy inflation. All G7 nations except Japan experienced a decline in inflation. Japan’s rate increased by 0.2 percentage points to 1.7%, as energy inflation moved from negative territory to nearly zero. The G7 includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
The US saw its inflation rate fall to 3.5% in June from 4.2% in May, primarily due to a sharp decline in energy inflation. France also experienced a lower annual inflation rate during the same period. The OECD attributed part of France’s reduction to more seasonal sales days than in June 2025. In Germany, Britain, and the US, core inflation remained the dominant factor. Meanwhile, in Canada, France, and Italy, food and energy inflation had a combined greater influence.
Moderation of Inflation in Eurozone and G20 Countries
In the Euro area, inflation, as measured by the Harmonised Index of Consumer Prices, decreased to 2.8% from 3.2% in May. This reduction was supported by lower energy inflation, with food inflation reaching its lowest point in five years. Eurostat’s preliminary estimate places July inflation at 2.9%, showing little change from June. Energy inflation in July was estimated at 10.0%, and the initial estimate for core inflation remained steady at 2.5%.
Across G20 countries, inflation eased to 4.1% in June from 4.3% in May. China’s annual inflation rate declined to 1.0% from 1.2%. During this period, inflation increased in Argentina, Indonesia, and South Africa. Conversely, Brazil, India, and Saudi Arabia recorded stable or broadly stable inflation rates. The June data highlighted a general decrease in inflation levels across major economic groups, although individual country results continued to vary, especially in energy, food, and core consumer prices.