PARIS - Year-on-year inflation in the OECD as measured by the Consumer Price Index (CPI) decreased slightly to 10.2% in July 2022 (Figure 1), from 10.3% in June 2022. This development reflects the first decline in inflation since November 2020. While year-on-year inflation fell between June and July 2022 by at least 0.5 percentage points in Canada, Greece, Luxembourg and the United States, the number of countries registering double-digit inflation increased from 13 to 15.

Energy price inflation in the OECD fell to 35.3% year-on-year in July 2022, down from 40.7% in June, with decreases in 26 of 38 OECD countries. However, food price inflation in the OECD continued to rise, reaching 14.5% in July 2022, compared with 13.3% in June 2022. Excluding food and energy, year-on-year inflation increased to 6.8% in July 2022, compared with 6.5% in June 2022.

In the G7 area, year-on-year inflation decreased to 7.6% in July 2022, compared with 7.9% in June, with lower energy price inflation in all G7 countries except the United Kingdom. Inflation excluding food and energy was the main contributor to overall inflation in Canada, the United Kingdom and the United States, while the combined contribution of food and energy prices was the main contribution to overall inflation in France, Germany, Italy and Japan (Figure 2).

In the euro area, year-on-year inflation as measured by the Harmonised Index of Consumer Prices (HICP) rose to 8.9% in July 2022, compared with 8.6% in June 2022, as the rise in food price inflation and in inflation excluding food and energy more than compensated the fall in energy price inflation. Eurostat’s flash estimate for the euro area in August 2022 points to a further increase in year-on-year inflation to 9.1%. Inflation excluding food and energy is estimated to have risen to 4.3%, compared with 4.0% in July 2022, while energy price inflation is estimated to have decreased.

In the G20 area year-on-year inflation was stable at 9.2% in July 2022, the same as in June 2022. Outside the OECD, year-on-year inflation rose further in Argentina, China, Indonesia, Saudi Arabia and South Africa, but decreased in Brazil and India.