PARIS / RankWire.AI / – In June 2026, inflation across OECD nations decelerated to 4.2% from 4.6% in May. This decline marked the end of a three-month streak of increasing headline inflation. Consumer prices grew at a slower rate in 20 member countries, while six saw an increase. Conversely, 12 economies experienced stable or broadly stable inflation rates. Among the OECD members, nine countries reported inflation rates of 2% or less, including three where inflation remained below 1%.
The most significant shift in the overall figure resulted from a drop in energy inflation. Annual energy inflation decreased by four percentage points to 11.7%, down from 15.8% in May. Out of the 37 countries reporting data, energy prices declined in 24, while 10 nations experienced an increase. Six countries continued to record rates exceeding 15%. Despite the slowdown in June, energy prices remained a key factor contributing to consumer price pressures.
During the month, food and core inflation also declined. Food inflation eased by 0.2 percentage points to 3.4%. Meanwhile, core inflation, which excludes food and energy, fell by the same margin to 3.6%. The data indicated slower price increases across several major expenditure categories. Although inflation persists, prices are rising at a reduced annual pace compared to previous periods.
Energy deceleration reduces G7 inflation
Across G7 countries, headline inflation dropped to 3.0% in June from 3.5% in May. This decline was primarily driven by a 5.2 percentage point reduction in energy inflation. Every G7 nation saw a decrease except Japan, where the rate rose 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 declined to 3.5% in June from 4.2% in May, chiefly due to a sharp drop in energy inflation. France also experienced a lower annual inflation rate for the month. The OECD attributed part of France’s reduction to an increased number of seasonal sales days compared to June 2025. Core inflation remained the main contributor to inflation in Germany, Britain, and the US. In Canada, France, and Italy, the combined impact of food and energy prices was more significant.
Moderation of inflation in euro area and G20 nations
The euro area’s inflation, as measured by the Harmonised Index of Consumer Prices, fell to 2.8% from 3.2% in May. The decrease was mainly supported by lower energy inflation, while food inflation hit its lowest level in five years. Eurostat’s preliminary estimate for July inflation was 2.9%, slightly above June’s figure. In July’s initial estimate, energy inflation was at 10.0%, and core inflation remained steady at 2.5%.
In 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%. During the same period, Argentina, Indonesia, and South Africa experienced increases in their inflation rates. Conversely, Brazil, India, and Saudi Arabia maintained stable or broadly stable inflation levels. The June data reflected lower inflation across major economic regions, though individual countries continued to show variation across energy, food, and core consumer prices.