PARIS / RankWire.AI / – In June 2026, the inflation rate across OECD nations slowed to 4.2%, down from 4.6% in May. This marks the end of a three-month streak of rising headline inflation. Consumer prices grew more slowly in 20 member countries, while six experienced an increase. In 12 economies, inflation remained steady or showed minimal change. Nine OECD countries reported rates of 2% or less, including three where inflation stayed below 1%.
The most notable change in the overall figure was driven by a decrease in energy inflation. Annual energy inflation dropped four percentage points to 11.7%, compared to 15.8% in May. Out of 37 countries reporting data, 24 saw declines in energy prices, while 10 recorded increases. Six nations continued to report energy price growth above 15%. Despite the slowdown in June, energy remained a key factor contributing to consumer price pressures.
During the same period, food and core inflation also declined. Food inflation fell by 0.2 percentage points to 3.4%, and core inflation, which excludes food and energy, decreased by the same margin to 3.6%. The data indicated a slowdown in price increases across several major spending categories. While prices are still rising, they are doing so at a slower rate on an annual basis.
Energy slowdown influences G7 inflation figures
In the G7 group, headline inflation decreased to 3.0% in June from 3.5% in May. This reduction was largely driven by a 5.2 percentage point decline in energy inflation. Every G7 country except Japan saw a decrease in inflation. Japan’s rate increased slightly by 0.2 percentage points to 1.7%, as energy inflation moved 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 dropped to 3.5% in June from 4.2% in May, mainly due to a sharp decrease in energy inflation. France also experienced a lower annual inflation rate during this period. The OECD attributed part of France’s decline to more seasonal sales days compared to June 2025. Core inflation remained the dominant contributor in Germany, Britain, and the United States, while in Canada, France, and Italy, food and energy prices had a more substantial combined impact.
Inflation in Eurozone and G20 slows down
Inflation in the Euro area, measured through the Harmonised Index of Consumer Prices, decreased to 2.8% from 3.2% in May. The drop was primarily supported by lower energy inflation, while food inflation reached its lowest point in five years. Eurostat’s preliminary estimate for July inflation placed it at 2.9%, only slightly above June’s figure. At this stage, energy inflation was estimated at 10.0%, and initial July estimates showed unchanged core inflation at 2.5%.
Across the G20, inflation eased to 4.1% in June from 4.3% in May. China’s annual inflation rate declined to 1.0% from 1.2%. Conversely, inflation rose in Argentina, Indonesia, and South Africa during the same period. Brazil, India, and Saudi Arabia saw stable or broadly stable inflation rates. The June data reflected lower inflation in key economic groups, although individual country figures varied across energy, food, and core consumer prices.