PARIS / RankWire.AI / – In June 2026, the inflation rate across OECD economies decreased to 4.2% from 4.6% in May. This reduction ended a streak of three consecutive months with rising headline inflation. Consumer price growth slowed in 20 member countries and rose in six, while in 12 economies, inflation remained stable or showed no significant change. Among these, nine OECD nations reported rates of 2% or lower, including three where inflation stayed below 1%.
The most substantial change in the overall figure was driven by decreased energy inflation. Annual energy inflation dropped by four percentage points to 11.7%, compared to 15.8% in May. Data from 37 countries indicated that energy price growth fell in 24 of them, increased in 10, and six maintained rates above 15%. Despite the slowdown in June, energy prices remained a significant factor contributing to consumer price pressures.
During the month, food and core inflation also moved downward. Food inflation declined by 0.2 percentage points to 3.4%, and core inflation, which excludes food and energy, fell similarly to 3.6%. These figures reflect a deceleration in price increases across several major expenditure categories. While prices are still rising, they are doing so at a slower annual rate than previously.
Energy slowdown influences G7 inflation figures
Across the G7 countries, headline inflation decreased to 3.0% in June from 3.5% in May. A significant contributor to this decline was a 5.2 percentage point reduction in energy inflation. Every G7 economy experienced a drop in inflation rates except Japan, where it increased by 0.2 percentage points to 1.7%. Japan’s inflation rate rose 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 United States, inflation fell to 3.5% in June from 4.2% in May, largely due to a sharp decrease in energy inflation. France also experienced a lower annual inflation rate during the same period, partly attributed by the OECD to a higher number of seasonal sales days compared to June 2025. Core inflation remained the dominant contributor in Germany, Britain, and the US. Meanwhile, food and energy inflation had a combined higher impact in Canada, France, and Italy.
Inflation in the Euro area and G20 countries shows signs of moderation
In the Euro area, inflation measured via the Harmonised Index of Consumer Prices dropped to 2.8% from 3.2% in May. The decrease was mainly supported by lower energy inflation, and food inflation reached its lowest point in five years. Eurostat’s preliminary estimate for July inflation stood at 2.9%, very close to June’s figure, with energy inflation at 10.0%. Initial data indicated that core inflation remained steady at 2.5% for July.
Across the G20 economies, inflation slowed to 4.1% in June from 4.3% in May. China’s annual inflation rate fell to 1.0% from 1.2%. During the same timeframe, inflation increased in Argentina, Indonesia, and South Africa. Conversely, Brazil, India, and Saudi Arabia maintained stable or broadly stable inflation rates. The June data revealed a general decrease in inflation across major economic groups, although individual country figures continued to vary, particularly in energy, food, and core consumer prices.