OECD inflation holds steady at 4.2% in September 2025 amid rising energy prices
Year-on-year headline inflation in the OECD, as measured by the Consumer Price Index, remained broadly stable at 4.2% in September 2025, compared with 4.1% in August.
In September, inflation rose in 17 of the 38 OECD countries, declined in 7, and was stable or broadly stable in the remaining 14. Headline inflation in September was at or below 2.0% in 7 OECD countries.
Year-on-year energy inflation in the OECD rose sharply to 3.1% in September, from 0.8% in August. This reflects a base effect from a significant drop in energy prices between August and September 2024. The increase was widespread, with 34 OECD countries recording higher year-on-year energy inflation. Food inflation in the OECD remained unchanged at 5.0%, while core inflation (excluding food and energy) edged down to 4.2% from 4.4%.
In the G7, year-on-year headline inflation remained broadly stable at 2.8% in September, compared with 2.7% in August. Canada saw the largest rise in headline inflation by 0.5 percentage points. Energy inflation in the G7 turned positive for the first time since January, while food inflation remained broadly stable except in Canada, which rose to 3.9%. By contrast, food inflation declined in Japan and the United Kingdom, standing at 7.3% and 4.5% respectively. Core inflation continued to be the main contributor to headline inflation in the G7, except in Japan, where food and energy combined had a larger impact.
In the euro area, year-on-year inflation, measured by the Harmonised Index of Consumer Prices (HICP), remained broadly stable at 2.2% in September. Food inflation fell, while the decline in energy prices slowed. According to Eurostat’s flash estimate, in October 2025, headline inflation in the euro area remained broadly stable at 2.1%, with energy inflation at minus 1.0% and core inflation stable at 2.4%.
In the G20, year-on-year inflation remained broadly stable at 3.8% in September. Headline inflation rose in Indonesia and fell in Argentina and India. In China, inflation remained negative at minus 0.3%, broadly unchanged from August. Inflation was also broadly stable in Brazil, Saudi Arabia, and South Africa.
