PARIS / RankWire.AI / – In June 2026, inflation across OECD nations slowed down to an annual rate of 4.2%, down from 4.6% in May. This decrease marks the end of a three-month streak of rising headline inflation. While 20 member countries experienced a slowdown in consumer price increases, six saw rates rise. In 12 economies, inflation remained stable or showed only minor fluctuations. Among these, nine OECD nations reported inflation rates at or below 2%, with three countries recording rates below 1%.
A significant contributor to the overall decline was the reduction in energy inflation, which saw the largest change. The annual energy inflation rate dropped four percentage points to 11.7%, from 15.8% in May. Data showed that energy price growth decreased in 24 of the 37 countries reporting figures, increased in 10, and six nations continued to see rates exceeding 15%. Despite the slowdown in June, energy remained a key driver of consumer price pressures.
Food and core inflation also experienced downward movement in the same period. Food inflation decreased by 0.2 percentage points to 3.4%, while core inflation—excluding food and energy—fell by the same margin to 3.6%. The data indicated a slowdown in price increases across several major expenditure categories. Although inflation remains positive, the rate of price growth has decelerated, meaning prices are rising more slowly than before on an annual basis.
Energy Price Easing Contributes to G7 Inflation Reduction
In the G7 countries, headline inflation decreased to 3.0% in June, down from 3.5% the previous month. The primary factor behind this decline was a 5.2 percentage point reduction in energy inflation. Every G7 economy, except Japan, experienced a fall in inflation rates. Japan’s inflation rate increased slightly by 0.2 percentage points to 1.7%, as energy inflation moved from negative territory to nearly zero. The G7 group includes Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
The United States saw its inflation rate drop to 3.5% in June from 4.2% in May, driven mainly by a sharp decline in energy inflation. France also experienced a decrease in its annual inflation rate during the same period. The OECD attributed part of France’s decline to a higher number of seasonal sales days compared to June 2025. Core inflation remained the predominant factor in Germany, Britain, and the United States, whereas in Canada, France, and Italy, food and energy inflation had a more substantial combined impact.
Inflation Moderates in Eurozone and G20 Countries
In the Eurozone, inflation measured through the Harmonised Index of Consumer Prices decreased to 2.8% from 3.2% in May. A notable driver of this moderation was lower energy inflation, along with food inflation reaching its lowest level in five years. Eurostat’s preliminary estimate for July inflation stood at 2.9%, only slightly above June’s figure, with energy inflation at 10.0%. Meanwhile, core inflation remained steady at 2.5% in the initial July estimate.
Across the G20, inflation declined to 4.1% in June, down from 4.3% in May. China’s annual inflation rate decreased from 1.2% to 1.0%. Conversely, inflation increased in Argentina, Indonesia, and South Africa during the same period. Brazil, India, and Saudi Arabia maintained stable or broadly stable inflation rates. The June data reflected lower inflation levels across major economic groups, though individual country results continued to vary in energy, food, and core consumer prices.