OECD Inflation Climbs to 4.2 Percent in June

2025-08-06 08:34:43

(MENAFN) Consumer inflation across the OECD region accelerated to 4.2% in June, up from 4% in May, according to data published Tuesday.

Out of 38 OECD member countries, 21 experienced rising inflation rates, with sharp increases of 0.5 percentage points reported in the Czech Republic, Estonia, and Sweden.

Conversely, inflation decreased in seven countries and remained steady or nearly unchanged in ten others.

The OECD highlighted a shift in energy costs: "Year-on-year energy inflation in the OECD turned positive in June, after having been negative in the two preceding months. Energy inflation was just below 1% in the OECD as a whole, with 16 OECD countries still reporting declines."

Food prices also climbed, with overall food inflation reaching 4.6% in June. Among the member states, 21 recorded rises in food inflation while 12 saw declines.

Core inflation, which excludes the more volatile food and energy sectors, held relatively steady at 4.5% in June.

Within the G7, inflation edged up to 2.6% in June from 2.4% in May. "The largest increases in headline inflation (0.3 percentage points) were recorded in France and the US." Specifically, France faced higher inflation in the services sector, whereas the US saw a rise in food inflation.

Inflation across the G20 remained unchanged at 3.9% in June. China experienced a slight increase in headline inflation, though it stayed close to zero. Consumer prices rose in Indonesia and South Africa but declined in India and remained stable in Brazil and Saudi Arabia.

In the eurozone, annual inflation measured by the Harmonized Index of Consumer Prices (HICP) stayed mostly steady at 2% in June.

Eurostat's preliminary data for July 2025 indicated, "year-on-year headline inflation in the euro area remained stable, with core inflation remaining unchanged and energy inflation broadly stable. Year-on-year services inflation in the euro area is estimated to have slowed to 3.1% in July, from 3.3 % in June," signaling easing pressure in the services sector.

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