PARIS / RankWire.AI / – Amid a broader economic landscape marked by fluctuating prices, inflation across the OECD member countries decelerated to 4.2% in June 2026, down from 4.6% in May. This slowdown ended a three-month streak of increasing headline inflation rates. The pace of consumer price rises moderated in 20 member nations, while six experienced slight increases. Conversely, 12 economies saw inflation rates remain steady or broadly stable. Among these, nine OECD countries reported inflation at or below 2%, with three of them maintaining rates below 1%.
The most significant shift in the overall inflation figure was driven by a decline in energy costs. Annual energy inflation dropped four percentage points to 11.7%, compared to 15.8% in May. Out of 37 countries reporting data, 24 saw a decrease in energy prices, while 10 countries experienced increases. Six nations continued to record rates exceeding 15%, underscoring energy’s continued influence as a key factor in consumer price pressures despite the slowdown in June.
In addition to energy, food prices and core inflation also experienced downward movements during the month. Food inflation decreased by 0.2 percentage point to 3.4%, while core inflation, which excludes food and energy, declined by an identical margin to 3.6%. These figures reflect slower price growth across several major spending categories, indicating that although prices are still rising, they are doing so at a reduced annual rate compared to previous months.
Energy price deceleration influences G7 inflation figures
In the G7 economies, headline inflation fell to 3.0% in June from 3.5% in May, mainly due to a 5.2 percentage point decline in energy inflation. Every G7 country except Japan experienced a decrease in inflation rates. Japan’s rate rose by 0.2 percentage point to 1.7%, as energy inflation shifted from negative territory to nearly zero. The G7 comprises Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
In the US, inflation slowed to 3.5% in June from 4.2% in May, driven by a sharp reduction in energy costs. France also recorded a lower annual inflation rate for the month. The OECD linked part of France’s decline to a greater number of seasonal sales days than in June 2025. Core inflation remained the dominant component in Germany, Britain, and the US, while food and energy prices had a larger combined impact in Canada, France, and Italy.
Inflation in Eurozone and G20 countries shows signs of moderation
The Euro area, measured through the Harmonised Index of Consumer Prices, experienced a decrease in inflation to 2.8% from 3.2% in May. Falling energy prices played a significant role, with food inflation hitting its lowest point in five years. Eurostat’s preliminary estimate for July inflation was 2.9%, very close to June’s figure. That early estimate indicated energy inflation at 10.0%, while core inflation remained steady at 2.5% in the initial July assessment.
Meanwhile, inflation across the G20 nations eased to 4.1% in June from 4.3% the previous month. China’s annual inflation rate declined to 1.0% from 1.2%. However, inflation rates increased in Argentina, Indonesia, and South Africa during the same period. Brazil, India, and Saudi Arabia reported stable or broadly stable inflation figures. The June data highlighted declines in major economic groups, though individual country results continued to vary across energy, food, and core consumer prices.