Consumer inflation continued its retreat in the June, according to new data from the Organization for Economic Cooperation and Development (OECD).
Annual inflation dropped to 5.7% in June, from 6.5% the previous month. Almost every country in the OECD saw headline inflation decline, the Paris-based group reported — Germany and Japan were the only exceptions.
Lower inflation was led by energy prices. Energy inflation was negative in most countries, and came in at -9.6% in June, after a -5.2% reading in May.
Additionally, food inflation continued to slow in June, the OECD said.
Outside of food and energy, core inflation also continued to ease.
In June, the annual rate of core inflation fell to 6.6% in June from 6.9% in May, a drop that “was slightly more pronounced than in previous months,” the OECD said.
Estimated services inflation also decreased in June, sliding to 5.4% from 5.7% in May, it noted.
For the G20, annual inflation was down to 5.5% in June from 5.9% in May. And, in the G7, the headline rate fell to 3.9% in June from 4.6% in May, the OECD also reported.
Within the G7, inflation “fell sharply” in Italy and the U.S. in June, the OECD said, as energy inflation dropped in Italy, and core inflation in the U.S. saw a “marked decrease”.
Inflation also slowed, albeit more modestly in Canada, the UK, and France, it said.
For the euro area, annual inflation was down to 5.5% in June, from 6.1% in May.
“Energy inflation and food inflation continued to decline, while core inflation increased slightly,” the OECD noted.