The annual inflation rate among OECD member countries remained stable at 4.2% in April 2025, according to the Consumer Price Index (CPI). This stability reflects a relative balance in macroeconomic conditions across member states. Inflation rose in 11 countries, declined in 12, and remained steady in 15. Notably, the United Kingdom and Latvia experienced increases of more than 0.5 percentage points, while Canada, Costa Rica, Czechia, Hungary, and Poland saw declines of the same magnitude or more.
On the energy front, inflation decreased slightly to -0.2% in April, compared to 0.3% in March, due to price drops in 29 out of 36 OECD countries. Despite the general downward trend, energy inflation surged by more than 7 percentage points in Turkey and the UK following regulatory changes such as lifting energy price caps. In Japan, inflation rose by 2.7 points after a reduction in government subsidies, while Canada experienced a sharp decline due to the removal of the carbon tax and lower crude oil prices.
Food inflation continued to slow, dropping to 4.5% from 4.8% in March. Meanwhile, core inflation—excluding food and energy remained nearly steady at 4.6%, indicating that structural factors such as housing and services continue to drive overall price increases in major economies.
In the euro area, inflation stayed at 2.2% in April, according to the Harmonised Index of Consumer Prices (HICP). While food inflation rose for the third consecutive month and core inflation edged up by 0.3 percentage points, energy inflation fell further to -3.6%, helping maintain the overall rate. Eurostat's flash estimate for May indicates a decline in headline inflation to 1.9%, and core inflation to 2.3%.
Among G7 countries, annual inflation held steady at 2.4% in April, despite declines in energy and food inflation. Core inflation remained the main driver of headline inflation, except in Japan, where food and energy made a greater contribution.
In the G20, inflation was broadly stable at 4.1%. Indonesia saw a noticeable rise in inflation, while countries like Brazil, China, India, Saudi Arabia, and South Africa showed little change. Inflation fell in Argentina but stayed above 45%, highlighting a continued severe inflation crisis.
Overall, the global inflation landscape reflects marked regional differences, underscoring the crucial role of monetary and fiscal policies in containing inflation especially amid global fluctuations in energy and food prices.
