YEAR-ON-YEAR inflation in the OECD as measured by the Consumer Price Index (CPI) rose to 10.3% in June 2022, compared with 9.7% in May 2022. This represents the sharpest price increase since June 1988. Year-on-year inflation, which continues to be impacted by food and energy prices, increased in all countries except Germany, Japan and the Netherlands. About one-third of OECD countries recorded double-digit inflation, with the highest rate recorded in Türkiye (78.6%). By contrast, the lowest rate was recorded in Japan (2.4%).

Food price inflation in the OECD continued to pick up strongly, reaching 13.3% in June 2022compared with 12.6% in May, the strongest food price increase since July 1975. Energy price inflation jumped to 40.7% year-on-year in June 2022, up from 35.4% in May. Excluding food and energy, year-on-year inflation increased to 6.7% in June 2022, compared with 6.4% in May 2022.

Year-on-year inflation in the average of the G7 countries reached 7.9% in June 2022 compared with 7.5% in May. The strongest rise was recorded in Italy (1.1 percentage points), followed by France (0.6 percentage point). Energy prices remained the main contributor to inflation in France, Germany, Italy and Japan, while inflation excludingfood and energy drove inflation in the United Kingdom and the United States (Figure 2). In the G7 area, year-on-year inflation excluding food and energy decreased slightly to 4.7%, compared with 4.8% in May 2022.

In the euro area, headline year-on-year inflation as measured by the Harmonised Index of Consumer Prices (HICP) rose to 8.6% in June 2022, compared with 8.1% in May 2022. Strong increases between May and June 2022 were recorded in both food and energy price inflation.Eurostat’s flash estimate for the euro area in July 2022 points to a further increase in year-on-year inflation (to 8.9%), while inflation excluding food and energy increased to 4.0% compared with 3.7% in June 2022. 

Year-on-year inflation in the G20 area rose to 9.2% in June 2022, compared with 8.9% in May 2022, with marked increases in all the G20 emerging market economies with the exception of India.