PARIS / RankWire.AI / – In June 2026, inflation across OECD nations slowed to 4.2% from 4.6% in May. This marks the end of three straight months of rising inflation figures. Consumer prices increased in 20 member countries but decreased in six. Meanwhile, 12 economies experienced stable or nearly stable inflation rates. Nine OECD nations reported inflation rates of 2% or less, including three where inflation was below 1%.
A significant factor in this slowdown was the decline in energy inflation. It dropped four percentage points to 11.7%, down from 15.8% in May. Energy price growth decreased in 24 out of 37 countries reporting data. Conversely, 10 countries saw an increase, with six nations still recording rates above 15%. Despite the slowdown in June, energy remained a key contributor to consumer price pressures.
Food and core inflation also declined during the month. Food inflation eased by 0.2 percentage points to 3.4%. The core inflation rate, which excludes food and energy, also fell by 0.2 points to 3.6%. Several major spending categories experienced slower price increases, indicating prices are rising at a less rapid pace than before.
Energy slowdown influences G7 inflation
Across G7 countries, headline inflation fell to 3.0% in June from 3.5% in May. This mostly resulted from a 5.2 percentage point drop in energy inflation. All G7 nations saw lower inflation except Japan, where the rate rose by 0.2 percentage points to 1.7%. Japan’s energy inflation moved 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 declined to 3.5% in June from 4.2% in May, primarily due to a sharp fall in energy prices. France also experienced a lower annual inflation rate for the same period. The OECD connected part of France’s decline to more seasonal sales days than in June 2025. Core inflation remained dominant in Germany, Britain, and the US. In Canada, France, and Italy, food and energy together had a bigger impact.
Eurozone and G20 inflation show signs of easing
Inflation in the euro area, based on the Harmonised Index of Consumer Prices, decreased to 2.8% from 3.2% in May. The decline was mainly driven by lower energy inflation, with food inflation reaching its lowest in five years. Eurostat’s initial estimate for July inflation was 2.9%, close to June’s figure. Energy inflation in July was estimated at 10.0%. The core inflation rate remained steady at 2.5% according to early data.
G20 economies experienced a slowdown in inflation, falling to 4.1% in June from 4.3% in May. China’s annual inflation rate declined to 1.0% from 1.2%. Meanwhile, inflation increased in Argentina, Indonesia, and South Africa. Brazil, India, and Saudi Arabia showed stable or broadly stable inflation rates. Overall, June figures point to lower inflation across major economic groups, though individual country results still vary in energy, food, and core prices.