OECD inflation rises to 4.3% as energy costs accelerate
OECD year-on-year CPI inflation reached 4.3% in August 2026, driven by energy, while food inflation fell to its lowest level since July 2021.
The story in focus
Year-on-year consumer price inflation across the OECD rose to 4.3% in August 2026 from 4.1% in July, with energy inflation climbing sharply while food inflation eased to its lowest level since July 2021.
- Headline OECD inflation increased in 23 member countries and declined in only three.
- OECD energy inflation rose to 13.6%, while food inflation fell to 2.8% and core inflation held at 3.6%.
- Eurostat's flash estimate points to euro area headline inflation of 3.8% in September 2026.
Energy drives the increase
Year-on-year inflation in the OECD, as measured by the Consumer Price Index, rose to 4.3% in August 2026, up from 4.1% in July, according to the OECD's update published on 6 October 2026. Prices rose faster in 23 OECD countries, held broadly steady in 12 and slowed in only three.
Energy inflation across the OECD climbed to 13.6%, 2.0 percentage points higher than in July, rising in 28 of the 37 countries with available data. Food inflation fell to 2.8% from 3.2%, its lowest level since July 2021, while core inflation excluding food and energy stayed at 3.6% for a third month. Annual inflation exceeded 5.0% in Colombia, Iceland and Lithuania, and surpassed 30% in Türkiye.
G7 and euro area trends
G7 headline inflation was broadly stable at 3.1% in August against 3.0% in July, as higher energy costs were partly offset by easing food prices. Energy inflation in the G7 rose 1.8 percentage points to 14.0%, with double-digit rates in every member except Japan, where government subsidies pushed energy prices lower year on year.
Euro area headline inflation reached 3.2% in August, up from 3.0%, as energy inflation rose to 14.3%. Eurostat's flash estimate for September 2026 points to a further rise to 3.8%, with energy estimated at 18.8%. In the G20, inflation rose to 4.1% from 3.9%, including increases in India, China and Indonesia.
What drove the rise in OECD inflation in August 2026?
Higher energy inflation, which reached 13.6% across the OECD, pushed headline inflation to 4.3%. Food inflation fell to 2.8% and core inflation held at 3.6%, so energy was the main upward pressure.
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