Year-on-year inflation across the OECD Organisation for Economic Co-operation and Development) countries, as measured by the Consumer Price Index (CPI) declined in June 2024, to 5.6% from 5.9% in May 2024.

This is the lowest level since October 2021, although a similar rate was already approached several times since the beginning of 2024, at 5.7%, the OECD noted.

Headline inflation declined in 24 of 38 OECD countries and stood below 2.0% in nine countries in June as opposed to six in May.

By contrast inflation remained above 5.0% in Colombia and Iceland, and above 70% in Turkey. Economists view that the Turkish economy is overheating and much of the inflation in recent months stems from a significant increase to the minimum wage that the government has mandated for 2024. The minimum wage for the year rose to TRL 17,002 (USD 510) per month in January, a 100% hike from the same period a year prior.

OECD inflation excluding Turkey is estimated to have declined to 2.9% in June, from 3.1% in May.

Year-on-year headline inflation in G7 countries fell to 2.7% in June from 2.9% in May, reaching its lowest level since March 2021. Headline inflation declined by 0.2% or more in the US, Canada and Germany and was broadly stable in the remaining G7 countries.

In the euro area, year-on-year inflation as measured by the Harmonised Index of Consumer Prices (HICP) was broadly stable at 2.5% in June as compared with 2.6% in May. It has hovered between 2.4% and 2.9% since October 2023. Based on HICP, three euro area countries (Lithuania, Italy and Finland) registered headline inflation at or below 1.0%, while it stood at 3.0% or above in five others (Belgium, Spain, the Netherlands, Austria, and Portugal).

Meanwhile, In the G20, year-on-year inflation fell to 7.0% in June from 7.3% in May. Headline inflation declined in Argentina (still exceeding 270%) and Indonesia, but it increased in Brazil for the second consecutive month. It remained broadly stable in China, Saudi Arabia, and South Africa.