After more than 18 months of rising prices, inflation finally pulled back in July, according to new data from the Organization for Economic Cooperation and Development (OECD).
The annual inflation rate for the OECD edged down to 10.2% in July from 10.3% in June, as energy prices pulled back from recent highs. The year-over-year rise in energy prices eased to 35.3% in July, down from 40.7% in June.
The modest decline in headline inflation marked the first dip since November 2020, the OECD said.
In particular, annual inflation declined by at least 0.5 percentage points in Canada, the U.S., Greece and Luxembourg, the OECD said.
For the G7 countries, annual inflation slowed to 7.6% in July, down from 7.9% in June, as energy price inflation eased in each market except for the U.K.
While energy prices eased, food costs continued rising in much of the OECD, the group said.
Overall, annual food price inflation rose to 14.5% in July, up from 13.3% in June.
Moreover, core inflation (excluding food and energy) continued to rise in July as well. Annual core inflation came in at 6.8% in July, up from 6.5% in June.
Core inflation was the primary driver of overall inflation in Canada, the U.S. and the U.K., the OECD said, whereas food and energy prices drove inflation in France, Germany, Italy and Japan.