PARIS / RankWire.AI / – According to the OECD, annual inflation in member economies decreased to 4.2% in June 2026, down from 4.6% in May. This reduction marked the end of a three-month streak of rising headline inflation. Out of the 20 countries experiencing lower consumer price increases, six saw an uptick, while 12 economies maintained stable or nearly stable inflation rates. Among the OECD nations, nine reported inflation rates of 2% or below, including three where inflation remained under 1%.
The most significant contributor to the overall decline was a slowdown in energy inflation. Yearly energy inflation dropped four percentage points to 11.7%, from 15.8% in May. Data showed that energy prices fell in 24 of the 37 reporting countries. Conversely, 10 countries saw an increase, with six maintaining rates above 15%. Despite the slowdown in June, energy remained a major factor exerting upward pressure on consumer prices.
In addition, food and core inflation experienced decreases over the same period. Food inflation declined by 0.2 percentage points to 3.4%, while core inflation, which excludes food and energy, also fell by the same margin to 3.6%. The data reflected slower price increases across several key categories of household spending. While prices continued to rise, the rate of inflation was noticeably lower than previous months.
Energy slowdown contributes to G7 inflation reduction
In June, headline inflation across the G7 countries dropped to 3.0% from 3.5% in May, mainly driven by a 5.2 percentage point decrease in energy inflation. Every G7 nation, apart from Japan, experienced a decline in inflation rates. Japan’s rate increased slightly by 0.2 percentage points to 1.7%, as energy inflation shifted from negative territory to nearly zero. The G7 includes 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, driven largely by a sharp reduction in energy inflation. France also experienced a decline in its annual inflation rate for the month. The OECD attributed part of France’s decrease to a higher number of seasonal sale days compared to June 2025. Core inflation continued to be the dominant factor in Germany, Britain, and the United States, while food and energy had a combined greater impact in Canada, France, and Italy.
Inflation moderation seen across Eurozone and G20 countries
The Euro area’s inflation rate, calculated via the Harmonised Index of Consumer Prices, fell to 2.8% in June from 3.2% in May. Contributing to this decrease was a slowdown in energy inflation, alongside food inflation reaching its lowest in five years. Eurostat’s preliminary estimate for July inflation was 2.9%, relatively unchanged from June, with energy inflation at 10.0%. The initial July reading also indicated that core inflation remained steady 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, Argentina, Indonesia, and South Africa saw increases in their inflation figures during the same period. Brazil, India, and Saudi Arabia reported stable or broadly stable rates. The June data illustrated declining inflation across major economic regions, although individual country results varied in terms of energy, food, and core consumer prices.