OECD: Inflation Holds Steady Across Member Economies in September 2025

Inflation across OECD countries remained largely unchanged in September 2025, with consumer prices rising by around 4.2% year on year, according to the latest update from the Organisation for Economic Co-operation and Development. The figure reflects a marginal increase from August’s 4.1%, suggesting that while headline inflation has stabilised, underlying pressures persist.

Energy costs were the main contributor to the slight acceleration, as the annual rate of energy inflation rose to roughly 3.1%, compared with just 0.8% in August. The OECD attributed this to base effects, with energy prices in many member states having been unusually low a year earlier. Food inflation remained elevated at approximately 5%, continuing to erode household purchasing power.

Core inflation, which excludes food and energy, showed a minor decline to about 4.2%, hinting that broader price pressures may be gradually easing but remain far above the levels targeted by most central banks. Across the OECD’s 38 member economies, inflation rose in 17 countries, fell in seven, and was broadly stable in the rest. Among G7 economies, the average annual inflation rate held at around 2.8%.

Economists note that the persistence of inflation near 4% indicates that the disinflationary trend observed earlier in 2025 has stalled. With energy prices fluctuating and service-sector inflation remaining strong, policymakers are likely to maintain a cautious approach to monetary easing. The report emphasises that despite the absence of a renewed surge, inflation is proving resistant to a rapid decline.

The OECD warned that the outlook depends heavily on global energy and food markets. The rebound in oil prices and agricultural commodities could further delay progress toward price stability, especially in economies where wages are growing faster than productivity.

The next release, covering October data, will clarify whether the September figures mark a turning point or a temporary pause in the downward trajectory. For now, inflation across the advanced economies remains well above central-bank targets, underscoring that price stability remains an unfinished task.

Source: OECD – Consumer Prices, Updated 5 November 2025.