INFLATION in the OECD as measured by the Consumer Price Index (CPI), remained broadly stable at 4.1% in July 2025, compared with 4.2% in June. Since March 2025, OECD inflation has hovered between 4.0% and 4.2%. Headline inflation rose in 10 OECD countries, with the largest increase, 0.6 percentage points (p.p.), registered in Slovenia. It declined in 12 OECD countries, with falls of more than 0.5 p.p. in Mexico, Poland, and Türkiye. The remaining 16 OECD countries saw stable or broadly stable inflation.

Türkiye was again the only OECD country to record double-digit inflation, while Costa Rica was the only country to experience deflation, reporting year-on-year headline inflation of minus 0.6 % for July. This marked the third consecutive month of deflation in Costa Rica, recently driven by stabilising food prices, persistently negative energy inflation, and near-zero core inflation (inflation less food and energy).

In July, year-on-year food inflation in the OECD remained broadly stable at 4.5% compared with 4.6% in June. Nevertheless, as in June, food inflation rose in the majority of OECD countries (21), while only 12 experienced a decline and 5 showed little change. Core inflation also remained broadly stable at 4.4% compared with 4.5% in June. Energy inflation in the OECD slowed to 0.3% in July compared with 0.9% in June.

In the G7, year-on-year headline and core inflation remained stable at respectively 2.6% and 3.0% in July. Headline inflation declined by 0.2 p.p. in both Canada and Japan, as a slowdown in energy inflation more than offset rising food inflation. It remained stable or broadly stable in the other G7 countries. Core inflation continued to be the main contributor to headline inflation across the G7 except in Japan, where food and energy inflation combined had a larger impact. 

In the euro area, year-on-year inflation as measured by the Harmonised Index of Consumer Prices (HICP) remained stable at 2.0% in July. Food inflation rose to its highest level since February 2024, while the decline in energy prices slowed slightly and core inflation remained stable. According to Eurostat’s flash estimate, in August 2025 year-on-year headline inflation in the euro area remained broadly stable at 2.1%, with unchanged core inflation, and energy prices declining at a slower rate. Headline HICP inflation is estimated to have risen in Germany in August.

In the G20, year-on-year inflation remained broadly stable at 3.8% in July. Headline inflation increased in India, Indonesia and South Africa, while it fell in Argentina (where it remained nevertheless above 35%), Brazil and Saudi Arabia. In China, headline inflation continued to hover around zero.