PARIS / RankWire.AI / – In June 2026, the annual inflation rate across OECD nations decreased to 4.2% from 4.6% recorded in May. This reduction brought an end to three months of consecutive increases in headline inflation. Consumer price increases slowed in 20 member countries and grew in six others. In 12 economies, inflation remained steady or showed minimal change. Among OECD members, nine countries reported inflation rates of 2% or less, including three where inflation stayed below 1%.
The most significant contributor to the overall decrease was a drop in energy inflation. Annual energy inflation fell by four percentage points, from 15.8% in May to 11.7%. Data showed that energy prices increased in 10 countries but declined in 24 of the 37 countries reporting data. Meanwhile, six nations continued to experience energy inflation above 15%. Despite the slowdown in June, energy remained a key driver of consumer price pressures across these economies.
During the same period, food and core inflation also showed signs of easing. Food inflation decreased by 0.2 percentage points, reaching 3.4%. The core inflation rate, which excludes food and energy, also fell by 0.2 percentage points to 3.6%. These figures indicate a deceleration in price increases across various major categories of consumer spending. A lower inflation rate means that prices are still rising, but at a slower pace compared to previous months.
Energy slowdown influences G7 inflation rates
Across the G7 group, headline inflation decreased to 3.0% in June from 3.5% in May, largely driven by a 5.2 percentage point reduction in energy inflation. Inflation declined in all G7 countries except Japan. Japan’s rate increased slightly by 0.2 percentage points to 1.7%, as energy inflation moved from negative territory back toward zero. The G7 includes 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, mainly due to a sharp decline in energy costs. France also experienced a decrease in its annual inflation rate during the same month. The OECD attributed part of France’s reduction to a higher number of seasonal sales days compared to June 2025. Core inflation remained the primary factor in Germany, Britain, and the U.S., while in Canada, France, and Italy, food and energy combined exerted a larger influence on overall inflation rates.
Inflation moderation observed in Eurozone and G20 countries
In the euro area, inflation, as measured by the Harmonised Index of Consumer Prices, decreased to 2.8% from 3.2% in May. The decline was mainly driven by lower energy inflation, and food prices reached their lowest level in five years. Eurostat’s preliminary estimate for July inflation was 2.9%, only slightly above June’s figure, with energy inflation at 10.0%. The initial July data also indicated that core inflation remained steady at 2.5%.
Across the G20 economies, inflation slowed to 4.1% in June from 4.3% in May. China’s annual inflation rate declined to 1.0% from 1.2%. Meanwhile, Argentina, Indonesia, and South Africa experienced increases in their inflation rates during the same period. Countries like Brazil, India, and Saudi Arabia maintained stable or broadly steady inflation rates. The June data reflected a general easing across major economic regions, although individual countries’ inflation figures continued to differ across energy, food, and core consumer prices.
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