PARIS / RankWire.AI / – The OECD reported that the annual inflation rate slowed to 4.2% in June 2026, down from 4.6% in May. This marks the end of three straight months of rising headline inflation. In that month, consumer price increases decreased in 20 member nations, while six saw an uptick. Meanwhile, 12 economies experienced stable or nearly stable inflation rates. A total of nine OECD countries reported inflation at 2% or below, including three where rates remained below 1%.
The most significant contribution to the overall slowdown came from energy inflation, which dropped by four percentage points to 11.7%, compared to 15.8% in May. Of the 37 countries reporting data, 24 experienced decreases in energy price growth, while 10 countries saw increases. Six nations continued to record energy inflation rates exceeding 15%. Despite the slowdown in June, energy remained a key factor exerting pressure on consumer prices.
Food and core inflation also declined during this period. Food inflation decreased by 0.2 percentage points to reach 3.4%. The core inflation rate, which excludes food and energy prices, fell by the same margin to 3.6%. The data indicated a slowdown in price increases across several major spending categories. Although inflation is still positive, the rate of price growth has moderated compared to previous months.
Energy slowdown helps reduce G7 inflation
In June, headline inflation across the G7 nations decreased to 3.0% from 3.5% in May. The main factor behind this decline was a 5.2 percentage point reduction in energy inflation. Inflation fell in all G7 countries except Japan, where the rate increased by 0.2 percentage points to 1.7%, driven by energy inflation shifting 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 decrease to 3.5% from 4.2%, mainly due to a sharp drop in energy inflation. France also experienced a lower annual inflation rate for the month. The OECD linked part of France’s reduction to a higher number of seasonal sale days compared to June 2025. In Germany, Britain, and the United States, core inflation remained the dominant driver. In Canada, France, and Italy, food and energy together had a greater combined impact on inflation figures.
Eurozone and G20 inflation show signs of moderation
Inflation within the euro area, as measured by the Harmonised Index of Consumer Prices, declined from 3.2% in May to 2.8% in June. The decrease was mainly supported by a reduction in energy inflation, with food inflation reaching its lowest point in five years. Eurostat’s preliminary estimate for July inflation placed it at 2.9%, almost unchanged from June, with energy inflation at 10.0%. The initial July report indicated that core inflation remained steady at 2.5%.
Across G20 nations, inflation slowed to 4.1% in June from 4.3% in May. China’s annual inflation rate decreased from 1.2% to 1.0%. At the same time, inflation increased in Argentina, Indonesia, and South Africa. Brazil, India, and Saudi Arabia experienced rates that were stable or broadly stable. The data for June reveal a general easing of inflation among major economies, though individual country results continue to vary across energy, food, and core consumer prices.