The Organization for Economic Cooperation and Development (OECD) reports that in August, year-on-year inflation rose in 15 of the 38 OECD countries (including Portugal), decreased in 13, and remained stable or broadly stable in the remaining 10.
Year-on-year food inflation in the OECD increased to 5.0% in August, up from 4.5% in July, reaching the highest level since February 2024, with sharp increases recorded in Turkey, Korea, and Colombia.
In August, OECD food price levels were 45.8% higher than in December 2019, before the COVID-19 pandemic, supply chain disruptions, and the onset of the war in Ukraine.
This marks the largest cumulative increase among the three main components of inflation – underlying (overall inflation minus food and energy), food, and energy.
Prior to this period, a similar magnitude in the rise of food prices took about 16 years – from May 2003 until the end of 2019.
However, food price inflation varied significantly between countries from December 2019 to August 2025: the cumulative increase in food prices during this period was just 6.9% in Switzerland, while it reached about 80% in Colombia and Hungary, and more than 790% in Turkey.
Year-on-year energy inflation in the OECD also increased in August, reaching 0.7%, compared to 0.3% in July, while underlying inflation fell slightly to 4.3%.
In the eurozone, year-on-year inflation, measured by the Harmonized Index of Consumer Prices (HICP), remained stable in August, at 2.0% for the third consecutive month.
Food inflation also remained at 3.2%, double the rate observed in January 2025, while the decline in energy prices slowed.
According to Eurostat’s preliminary estimate, in September 2025, overall year-on-year inflation in the eurozone rose to 2.2%, as the fall in energy prices slowed again, while underlying inflation is estimated to have remained stable.
In the G7, overall year-on-year inflation remained broadly stable at 2.7% in August.
Underlying inflation remained the main contributor to overall inflation across the G7.
In the G20, annual inflation remained broadly stable at 3.7% in August.
Inflation fell in China, where it was negative at minus 0.4%, and also declined in Argentina (still above 30%) and South Africa, while it rose in India and was broadly stable in Brazil, Indonesia, and Saudi Arabia.
