PARIS / RankWire.AI / – The OECD’s annual inflation rate slowed to 4.2% in June 2026 from 4.6% in May, marking the end of a three-month streak of rising headline inflation. In 20 member countries, consumer price increases eased, while six saw rises. In 12 economies, inflation remained stable or broadly stable. Additionally, nine OECD nations reported rates of 2% or lower, including three countries where inflation stayed below 1%.
The most significant change in the overall figure was driven by a decline in energy inflation. Yearly energy inflation dropped by four percentage points to 11.7%, down from 15.8% in May. Out of the 37 countries reporting data, energy price growth declined in 24, increased in 10, and six nations continued to record rates exceeding 15%. Despite the slowdown in June, energy remained a key factor contributing to consumer price pressures.
Food prices and core inflation also saw decreases during the month. Food inflation decreased by 0.2 percentage point to 3.4%. Excluding food and energy, core inflation fell similarly by 0.2 percentage point to 3.6%. The data indicated a slowdown in price increases across several major spending sectors, implying that while prices are still rising, they are doing so at a slower rate than before.
Energy slowdown influences G7 inflation rates
In June, headline inflation across the G7 economies decreased to 3.0% from 3.5% in May. A significant 5.2 percentage point drop in energy inflation was primarily responsible for this decline. Every G7 country except Japan experienced a fall in inflation rates. Japan’s rate rose slightly by 0.2 percentage point to 1.7% as energy inflation shifted from negative territory to nearly zero. The G7 includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
In the US, inflation decreased to 3.5% in June from 4.2% in May, mainly due to a sharp drop in energy inflation. France also experienced a lower annual inflation rate during the same period. The OECD attributed part of France’s decline to a higher number of seasonal sales days compared to June 2025. Core inflation remained the dominant contributor in Germany, Britain, and the United States, while food and energy combined had a larger impact in Canada, France, and Italy.
Inflation in Eurozone and G20 shows signs of moderation
The Euro area’s inflation, measured via the Harmonised Index of Consumer Prices, fell to 2.8% in June from 3.2% in May. This decrease was mainly supported by lower energy inflation, with food inflation reaching its lowest point in five years. Eurostat’s preliminary estimate for July indicated a slight increase to 2.9%, with energy inflation at 10.0%. Meanwhile, core inflation remained steady at 2.5% in the initial July report.
Across the G20, inflation eased to 4.1% in June from 4.3% in May. China’s annual rate decreased to 1.0% from 1.2%. However, inflation increased in Argentina, Indonesia, and South Africa during the same period. Brazil, India, and Saudi Arabia experienced stable or broadly stable inflation rates. Overall, June figures reflected a decline in inflation across major economic groups, though individual country results continued to vary across energy, food, and core consumer prices.