OECD headline inflation fell to 4.0% YoY in May 2025 from 4.2% in April, marking the lowest level since June 2021.

• Core inflation declined to 4.4% YoY from 4.6%, with decreases in 24 OECD countries and increases in only 5.
• Food inflation was steady at 4.6% YoY; energy inflation dipped slightly to -0.3% YoY, with both categories up over 40% since Dec 2019.
• G7 inflation held at 2.4% YoY for a third straight month; core inflation remained the main driver, except in Japan.
• Euro area HICP dropped to 1.9% YoY in May (from 2.2%), driven by a decline in services inflation (-0.8pp); core slowed to 2.3%.
• G20 inflation eased to 3.9% YoY (from 4.1%), with Argentina falling sharply to 43.5% YoY, six times lower than a year ago.