PARIS / RankWire.AI / – In June 2026, OECD nations experienced a slowdown in annual inflation to 4.2%, down from 4.6% in May. This reduction brought an end to a streak of three consecutive months of rising headline inflation. Out of the 37 member countries, 20 saw their consumer price growth decrease, six recorded increases, and in 12 economies, inflation remained stable or nearly so. Furthermore, nine OECD nations reported inflation rates of 2% or below, including three where inflation was less than 1%.
The most notable change in the overall figure resulted from a decline in energy inflation. Annual energy inflation dropped by four percentage points to 11.7%, compared to 15.8% in May. Data from 24 of the 37 reporting countries indicated a decrease in energy price growth, while 10 countries saw increases and six continued to have rates above 15%. Despite the slowdown in June, energy prices still played a significant role in driving consumer inflation.
During the same period, food and core inflation also registered decreases. Food inflation eased by 0.2 percentage point to 3.4%. Meanwhile, core inflation, which excludes food and energy, declined by the same margin to 3.6%. The data reflected a slowdown in price increases across various key expenditure categories. A lower inflation rate signifies that prices are still rising but at a more modest annual rate than previously.
Energy slowdown influences G7 inflation rates
In June, headline inflation across the G7 countries fell to 3.0% from 3.5% in May, primarily due to a 5.2 percentage point decrease in energy inflation. Every G7 economy experienced a decline except Japan, where inflation increased by 0.2 percentage point to 1.7% as energy inflation moved from negative territory to nearly zero. The G7 consists of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
In the United States, inflation dropped to 3.5% from 4.2%, driven largely by a sharp decline in energy prices. France also saw a reduction in its annual inflation rate during June, partly attributed by the OECD to more seasonal sales days than in June 2025. Core inflation remained the primary contributor in Germany, Britain, and the US, while food and energy combined had a bigger impact in Canada, France, and Italy.
Moderation of inflation observed in Eurozone and G20 countries
Eurozone inflation, as measured by the Harmonised Index of Consumer Prices, decreased to 2.8% from 3.2% in May, supported mainly by a drop in energy inflation. Food inflation hit its lowest point in five years. Eurostat’s preliminary estimate for July placed inflation at 2.9%, close to June’s figure. Energy inflation was estimated at 10.0%, and core inflation remained steady at 2.5% in the initial July estimate.
Across G20 nations, inflation eased to 4.1% in June from 4.3% in May. China’s annual inflation rate fell to 1.0% from 1.2%. Conversely, Argentina, Indonesia, and South Africa saw increases in their inflation figures during the same period. Brazil, India, and Saudi Arabia maintained stable or nearly stable rates. Overall, June’s data indicated lower inflation across major economies, though individual results still varied across energy, food, and core consumer prices.