PARIS / RankWire.AI / – In June 2026, the inflation rate across OECD nations decelerated to 4.2% from 4.6% in May. This reduction brought an end to three straight months of increasing headline inflation figures. Price increases for consumers slowed down in 20 member states, while six saw growth. Conversely, 12 economies experienced stable or nearly stable inflation rates. Among these, nine OECD countries reported inflation levels of 2% or less, with three of them maintaining rates below 1%.
A significant contributor to this overall decrease was the drop in energy inflation. Yearly energy price growth declined by four percentage points to 11.7%, down from 15.8% in May. Data from 37 countries revealed that energy prices grew in 24, while 10 nations experienced an increase and six continued to record rates over 15%. Despite the slowdown observed in June, energy remained a key factor influencing consumer prices.
Both food and core inflation also showed declines during this period. Food inflation decreased by 0.2 percentage points to 3.4%, while core inflation — which excludes food and energy — fell by the same margin to 3.6%. These figures indicate a moderation in price growth across various major spending categories. Although prices are still rising, the pace of increase has slowed compared to previous periods.
Energy Price Easing Helps Reduce G7 Inflation
Across the G7 economies, headline inflation decreased to 3.0% in June from 3.5% in May, largely driven by a 5.2 percentage point drop in energy inflation. Every G7 country saw a decline in inflation except Japan, where rates rose by 0.2 percentage points to 1.7%, with energy inflation shifting from negative territory to nearly zero. The G7 includes Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
In the US, inflation decreased to 3.5% in June from 4.2% in May, with a notable drop in energy inflation. France also experienced a reduction in its annual inflation rate during the same month. The OECD attributed part of France’s decline to a higher number of seasonal sales days compared to June 2025. In Germany, Britain, and the United States, core inflation remained the predominant factor, whereas in Canada, France, and Italy, the combined influence of food and energy prices was more prominent.
Moderation in Inflation Seen in Eurozone and G20 Countries
The Euro area’s inflation, calculated via the Harmonised Index of Consumer Prices, fell to 2.8% from 3.2% in May. The decline was largely supported by reduced energy inflation, while food prices reached their lowest point in five years. Eurostat’s early July estimate placed inflation at 2.9%, slightly above June’s figure, with energy inflation at 10.0%. The preliminary data also showed that core inflation remained steady at 2.5% in July.
Across G20 nations, inflation slowed to 4.1% in June from 4.3% in May. China’s annual inflation rate decreased to 1.0% from 1.2%. Meanwhile, Argentina, Indonesia, and South Africa saw their inflation rates increase during the same period. Brazil, India, and Saudi Arabia reported rates that were stable or broadly unchanged. The June data indicated lower inflation in major economies overall, though individual countries continued to display varied results across energy, food, and core consumer prices.