The Organization for Economic Cooperation and Development (OECD) in March 2026 published new data on inflation, which fell to 3.3% in January 2026 from 3.6% in December 2025, but consumer prices remain 35.6% higher than pre-pandemic levels from December 2019.

The decline was broad-based across the OECD region, with 22 of 35 countries reporting lower inflation rates. The number of OECD countries with inflation at or below 2% increased from 9 to 15 countries compared to December. Energy inflation turned negative for the first time since May 2025, dropping to -0.6%, while food inflation also moderated.

Among G7 nations, overall inflation decreased to 2.1% from 2.4% the previous month. France recorded the lowest G7 inflation rate at 0.3%, while the UK remained the only G7 country above 3% inflation. Japan’s inflation fell below 2% for the first time since March 2022, and US inflation declined to 2.4%.

The eurozone saw inflation drop to 1.7% in January, though Eurostat’s preliminary February estimate suggests a rebound to 1.9%. Despite recent moderation, the persistent elevation of price levels compared to pre-COVID benchmarks will continue challenging employers managing compensation and benefits costs globally.