PARIS / RankWire.AI / – In June 2026, the inflation rate across economies monitored by the OECD slowed down to 4.2%, marking a decrease from 4.6% in May. This slowdown brought an end to three months of consecutive increases in headline inflation figures. Among the 36 member countries, 20 experienced a deceleration in consumer price increases, while six saw an uptick. The remaining 12 nations maintained stable or broadly stable inflation levels. Notably, nine OECD countries registered inflation rates of 2% or less, including three with rates below 1%.
The most significant factor influencing the overall decline was the drop in energy inflation. The annual energy inflation rate dropped by four percentage points, reaching 11.7%, compared to 15.8% in May. Of the 37 countries reporting data, energy price growth decreased in 24 nations, while it increased in 10. Conversely, six countries continued to record rates exceeding 15%. Despite the slowdown in June, energy remained a key driver of consumer price pressures.
Food prices and core inflation measures also experienced declines during this period. Food inflation eased by 0.2 percentage points to 3.4%, and core inflation—excluding food and energy—fell by the same margin to 3.6%. The data indicated slower price growth across several major expenditure categories. Although prices are still rising, the pace has decelerated, reflecting a lower annual inflation rate.
Energy Price Deterioration Contributes to G7 Inflation Drop
Across the G7 nations, headline inflation decreased to 3.0% in June from 3.5% in May. This was largely driven by a 5.2 percentage point reduction in energy inflation. Every G7 country experienced a decline except Japan, where the rate increased 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 United States, inflation decreased to 3.5% in June from 4.2% in May, primarily due to a sharp decline in energy inflation. France also reported a lower annual inflation rate during the same month, partly attributable to a higher number of seasonal sales days compared to June 2025. Core inflation continued to be the main contributor to overall inflation in Germany, Britain, and the United States. Meanwhile, food and energy combined had a more significant impact in Canada, France, and Italy.
Moderation in Inflation Seen in Eurozone and G20 Countries
Inflation in the euro area, as measured by the Harmonised Index of Consumer Prices, declined to 2.8% from 3.2% in May. The drop was mainly driven 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%, nearly unchanged from June, with energy inflation estimated at 10.0%. The initial July reading indicated stable core inflation at 2.5%.
Across G20 economies, inflation eased to 4.1% in June from 4.3% in May. China’s annual inflation rate decreased to 1.0% from 1.2%. Conversely, inflation increased in Argentina, Indonesia, and South Africa during the same period. Brazil, India, and Saudi Arabia maintained stable or broadly stable inflation rates. The June data reflected lower inflation levels among major economic groups, although country-specific results showed varied trends in energy, food, and core consumer prices.