PARIS / RankWire.AI / – Annual inflation across OECD economies slowed to 4.2% in June 2026 from 4.6% in May. The decline ended three consecutive months of rising headline inflation. Consumer price growth eased in 20 member countries and increased in six. Inflation remained stable or broadly stable in 12 economies. Nine OECD countries reported rates of 2% or less, including three where inflation stayed below 1%.
Lower energy inflation produced the largest change in the overall figure. Annual energy inflation fell four percentage points to 11.7%, compared with 15.8% in May. Energy price growth declined in 24 of the 37 countries that reported data. It increased in 10 economies, while six countries continued to record rates above 15%. Energy therefore remained an important source of consumer price pressure despite the June slowdown.
Food and underlying inflation also moved lower during the month. Food inflation eased by 0.2 percentage point to 3.4%. Core inflation, which excludes food and energy, fell by the same amount to 3.6%. The figures showed slower price growth across several major spending categories. A lower inflation rate means prices continue to rise, but at a slower annual pace than before.
Energy slowdown cuts G7 inflation
Headline inflation across G7 economies declined to 3.0% in June from 3.5% in May. A 5.2 percentage point drop in energy inflation drove most of that change. Inflation fell in every G7 economy except Japan. Japan’s rate rose by 0.2 percentage point to 1.7% as energy inflation moved from negative territory to nearly zero. The G7 includes Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
US inflation fell to 3.5% in June from 4.2% in May as energy inflation dropped sharply. France also recorded a lower annual rate during the month. The OECD linked part of France’s decline to a greater number of seasonal sales days than in June 2025. Core inflation remained the largest contributor in Germany, Britain and the United States. Food and energy had a greater combined impact in Canada, France and Italy.
Euro area and G20 inflation moderates
Euro area inflation, measured through the Harmonised Index of Consumer Prices, declined to 2.8% from 3.2% in May. Lower energy inflation supported the decrease, while food inflation reached its lowest level in five years. Eurostat later estimated July inflation at 2.9%, little changed from June. That preliminary reading placed energy inflation at 10.0%. Core inflation remained unchanged at 2.5% in the initial July estimate.
Inflation across G20 economies eased to 4.1% in June from 4.3% in May. China’s annual rate declined to 1.0% from 1.2%. Inflation increased in Argentina, Indonesia and South Africa during the same period. Brazil, India and Saudi Arabia recorded stable or broadly stable rates. The June figures showed lower inflation across major economic groups, while national results continued to vary across energy, food and core consumer prices.