Year-on-year inflation in the OECD as measured by the Consumer Price Index (CPI) slowed to 4.5% in February 2025 from 4.7% in January.
Inflation declined in 15 of 38 OECD countries and was stable or broadly stable in 15. By contrast, it rose in 8 OECD countries, with increases exceeding 1.0 percentage point (p.p.) in Estonia and Norway.
Year-on-year OECD energy inflation fell to 3.6% in February 2025 from 4.0% in January. Energy inflation declined in 23 OECD countries while increasing in 12.
OECD food inflation remained stable even though food inflation rose in 24 OECD countries and fell in only 6, owing in part to a very strong 6.7 p.p. decline in Türkiye. OECD core inflation (inflation less food and energy) remained broadly stable.
Year-on-year inflation in the G7 slowed to 2.7% in February from 2.9% in January. Headline inflation fell in France largely due to a strong decline in electricity prices with regulated tariffs cut by an average of 15%.
Following three consecutive months of increases, headline inflation fell to a lesser extent in Japan, due to a decline in energy inflation that nevertheless remains the highest among the G7.
Headline inflation declined by 0.2 p.p. in the United Kingdom and in the United States. By contrast, it rose by 0.7 p.p. in Canada, driven by the end of tax breaks for selected products, such as food, beverages, and books. Core inflation remained the primary driver of headline inflation across all G7 countries except Japan, where food inflation accounted for more than half of year-on-year headline inflation.
In the euro area, year-on-year inflation as measured by the Harmonised Index of Consumer Prices (HICP) declined to 2.3% in February from 2.5% in January, mainly driven by a fall in energy inflation. In March 2025, according to Eurostat’s flash estimate, euro area headline inflation remained broadly stable at 2.2%, masking variability across member states, with HICP inflation rising by 0.4 p.p. in Finland, Ireland, Italy and Lithuania and declining by 0.3 p.p. or more in seven OECD euro area countries, including Germany. Energy prices are estimated to have declined in the euro area and core inflation to have slowed.
In the G20, year-on-year inflation fell to 4.3% in February from 4.8% in January, reaching its lowest level since May 2021.
Year-on-year inflation was negative in China, at minus 0.7%, reflecting to a large extent a base effect – in 2024 the Lunar New Year holiday extended over both January and February, whereas in 2025 it took place entirely in January. Headline inflation also fell in Indonesia, to stand close to zero, and in India. In Argentina, inflation declined further but remained above 60%. Headline inflation increased in Brazil and remained broadly stable in Saudi Arabia and South Africa
