PARIS / RankWire.AI / – In June 2026, the inflation rate across OECD nations slowed to 4.2% from 4.6% in May, marking the end of three consecutive months of rising headline inflation. Consumer price increases decreased in 20 member countries, while six experienced a rise, and 12 economies saw inflation remaining stable or broadly stable. Nine OECD countries reported inflation rates of 2% or less, including three where inflation was below 1%.
The most significant change in the overall figure was driven by a decline in energy inflation, which fell four percentage points to 11.7% from 15.8% in May. Out of 37 countries reporting data, 24 saw decreases in energy price growth, while 10 experienced increases, and six continued to record rates above 15%. Despite the slowdown in June, energy remained a key contributor to consumer price pressures.
During the same month, food and core inflation also moved downward, with food inflation decreasing by 0.2 percentage points to 3.4%, and core inflation, excluding food and energy, dropping by the same margin to 3.6%. This data indicates that price growth across several major spending categories slowed, meaning prices still increase but at a slower rate annually than before.
Energy slowdown reduces G7 inflation
Across the G7 economies, headline inflation declined to 3.0% in June from 3.5% in May, mainly due to a 5.2 percentage point drop in energy inflation. Every G7 country, except Japan, experienced a decrease in inflation; Japan’s rate rose slightly by 0.2 percentage points 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 fell to 3.5% from 4.2% in May, largely due to a sharp decrease in energy inflation. France also experienced a lower annual inflation rate in June, partly attributed by the OECD to a higher number of seasonal sales days compared to June 2025. Core inflation remained the main contributor to price increases in Germany, Britain, and the United States, while food and energy prices had a combined greater impact in Canada, France, and Italy.
Inflation Moderates in Euro Area and G20
In the Euro area, inflation, as measured by the Harmonised Index of Consumer Prices, decreased to 2.8% from 3.2% in May, supported by lower energy inflation and the lowest food inflation in five years. Eurostat’s initial estimate for July inflation was 2.9%, slightly up from June, with energy inflation at 10.0%. The initial July data showed no change in core inflation, remaining at 2.5%.
Meanwhile, inflation across G20 economies eased to 4.1% in June from 4.3% in May. China’s annual inflation rate declined to 1.0% from 1.2%, whereas Argentina, Indonesia, and South Africa experienced increases during the same period. Brazil, India, and Saudi Arabia maintained stable or broadly stable inflation rates. June’s data reflected lower inflation across major economic groups, though individual countries continued to show variations across energy, food, and core consumer prices.