PARIS / RankWire.AI / – The annual inflation rate among OECD nations slowed to 4.2% in June 2026 from 4.6% in May. This decrease brought an end to three straight months of increasing headline inflation. Consumer price increases lessened in 20 member states, while six experienced growth. In 12 economies, inflation remained steady or showed little change. Nine OECD countries reported rates at or below 2%, including three where inflation was under 1%.
The most significant shift in the overall figure was driven by a decline in energy inflation. Yearly energy inflation dropped four percentage points to 11.7%, compared to 15.8% in May. Out of the 37 countries reporting data, 24 saw decreases in energy price growth. Conversely, 10 nations experienced increases, and six continued to register rates above 15%. Despite the slowdown in June, energy remained a key factor influencing consumer prices.
Prices for food and underlying inflation also decreased over the same period. Food inflation dropped by 0.2 percentage point to 3.4%. Core inflation, which excludes food and energy, declined by the same margin to 3.6%. These figures reflect a slowdown in price increases across several major expenditure categories. Although inflation persists, the pace of price rises is now slower than before.
Energy Price Deceleration Contributes to G7 Inflation Drop
In June, the overall inflation rate for G7 nations fell to 3.0% from 3.5% in May, largely due to a 5.2 percentage point decrease in energy inflation. All G7 members, except Japan, saw declines in inflation. Japan’s rate increased by 0.2 percentage points to 1.7%, as energy inflation shifted from negative figures to nearly zero. The G7 comprises Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
In the United States, inflation dropped to 3.5% in June from 4.2% in May, driven by a sharp decline in energy inflation. France also experienced a reduction in its annual inflation rate for the month. The OECD attributed part of France’s decrease to a higher number of seasonal sale days than in June 2025. Meanwhile, core inflation remained the primary factor in Germany, Britain, and the US. In Canada, France, and Italy, combined food and energy prices exerted a greater influence.
Moderation of Inflation Seen in Eurozone and G20 Countries
The Euro area’s inflation, as measured through the Harmonised Index of Consumer Prices, fell to 2.8% from 3.2% in May. This decrease was mainly supported by lower energy inflation, and food inflation reached its lowest point in five years. Eurostat’s early estimate for July inflation placed it at 2.9%, showing little change from June. The preliminary data indicated energy inflation at 10.0%, while core inflation remained steady at 2.5%.
Inflation among G20 economies eased to 4.1% in June from 4.3% in May. China’s annual rate decreased to 1.0% from 1.2%. During this period, inflation increased in Argentina, Indonesia, and South Africa. Conversely, Brazil, India, and Saudi Arabia maintained stable or broadly unchanged inflation rates. These figures reveal a general trend of slowing inflation in major economies, although individual results continue to differ across energy, food, and core consumer price categories.