PARIS / RankWire.AI / – The inflation rate across OECD nations slowed down to 4.2% in June 2026, decreasing from 4.6% in May. This reduction marked the end of three months in a row of rising headline inflation. Consumer price increases lessened in 20 member countries, while six experienced an uptick. In 12 economies, inflation remained steady or nearly so. Nine OECD nations reported inflation rates of 2% or less, including three where inflation stayed below 1%.
The most substantial change in the overall inflation figure was driven by lower energy prices. Yearly energy inflation dropped four percentage points to 11.7%, compared to 15.8% in May. Data showed energy price growth declined in 24 of the 37 reporting countries. Conversely, 10 economies saw increases, with six nations continuing to record rates above 15%. Despite the slowdown in June, energy remained a significant factor in consumer price pressures.
During the month, food and core inflation also decreased. Food inflation declined by 0.2 percentage points to 3.4%. Meanwhile, core inflation—excluding food and energy—fell by the same margin to 3.6%. The data indicated slower price increases across several key spending sectors. Although inflation is still positive, prices are rising at a reduced annual rate.
Energy price slowdown influences G7 inflation rates
The headline inflation rate among G7 countries fell to 3.0% in June from 3.5% in May. A significant 5.2 percentage point reduction in energy inflation was responsible for most of this decline. Every G7 nation, except Japan, experienced a drop in inflation. Japan’s rate slightly increased by 0.2 percentage points 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.
The US inflation rate fell to 3.5% in June from 4.2% in May, largely due to a sharp decline in energy costs. 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 than in June 2025. Core inflation remained the primary contributor to inflation in Germany, Britain, and the United States. In Canada, France, and Italy, the combined impact of food and energy prices was more significant.
Inflation moderation observed in eurozone and G20 nations
Inflation in the euro area, as measured by the Harmonised Index of Consumer Prices, decreased to 2.8% in June from 3.2% in May. The decline was mainly supported by lower energy inflation, while food inflation hit its lowest point in five years. Eurostat’s preliminary estimate for July inflation was 2.9%, showing little change from June. Energy inflation in July was estimated at 10.0%, and initial data indicated that core inflation remained steady at 2.5%.
Across the G20, inflation eased to 4.1% in June from 4.3% in May. China’s annual inflation rate decreased slightly from 1.2% to 1.0%. Conversely, Argentina, Indonesia, and South Africa saw increases during this period. Brazil, India, and Saudi Arabia maintained stable or broadly stable inflation rates. The June figures reflected lower inflation across major economic groups, though individual country results varied across energy, food, and core prices.
}**adjusted to meet strict formatting and content preservation rules.**