PARIS / RankWire.AI / – In June 2026, the OECD reported that annual inflation slowed to 4.2%, a decrease from 4.6% observed in May. This marked the end of three consecutive months of rising inflation figures. While consumer price growth decelerated in 20 member nations, six countries experienced an increase. In 12 economies, inflation remained steady or showed broad stability. Additionally, nine OECD nations reported inflation rates at or below 2%, including three where inflation stayed below 1%.
The most significant change in the overall inflation figure was driven by a sharp reduction in energy inflation. Annual energy inflation dropped by four percentage points to reach 11.7%, down from 15.8% in May. Data shows that 24 out of 37 countries reporting energy price data experienced a decline, while 10 economies saw an increase. Six nations continued to record energy inflation rates above 15%. Despite the slowdown in June, energy prices remained a key factor exerting upward pressure on consumer prices.
Food and core inflation also moved downward in the same period. Food inflation decreased by 0.2 percentage points, settling at 3.4%, while core inflation, which excludes food and energy, fell by the same margin to 3.6%. These figures indicate a slowdown in price growth across several major expenditure categories. Although inflation remains positive, the pace of price increases has moderated compared to previous months.
Energy Price Decline Leads to Drop in G7 Inflation Rates
In the G7 countries, headline inflation decreased to 3.0% in June from 3.5% in May. This drop was primarily driven by a 5.2 percentage point reduction in energy inflation. All G7 nations experienced a decline in inflation except Japan. Japan’s rate increased by 0.2 percentage points to 1.7%, as energy inflation shifted from negative territory to nearly zero. The G7 consists of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
In the United States, inflation eased to 3.5% in June from 4.2% in May, primarily due to a sharp drop in energy prices. France also experienced a decrease in its annual inflation rate during the same month. The OECD attributed part of France’s decline to a greater number of seasonal sales days compared to June 2025. In Germany, Britain, and the United States, core inflation remained the dominant contributor to overall inflation, while in Canada, France, and Italy, combined food and energy inflation had a more significant impact.
Moderation in Eurozone and G20 Inflation Trends
The Euro area’s inflation, as measured by the Harmonised Index of Consumer Prices, decreased to 2.8% in June from 3.2% in May. The decline was supported mainly by lower energy inflation, with food inflation reaching its lowest level in five years. Eurostat’s preliminary estimate for July inflation was 2.9%, showing little change from June, with energy inflation estimated at 10.0%. The initial July reading indicated that core inflation remained steady at 2.5%.
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 this period. Countries such as Brazil, India, and Saudi Arabia reported stable or broadly stable inflation rates. Overall, June’s data pointed to lower inflation levels across major economic regions, despite differing national trends across energy, food, and core prices.