OECD inflation driven by energy rise

The annual inflation rate in OECD countries rose to 4.3% in August 2026. This is mainly due to a surge in energy prices, which increased by 13.6%, with notable rises in 28 out of 37 countries for which data is available. In the eurozone, the inflation rate climbed to 3.2% as a result of a 14.3% increase in energy prices, with projections indicating it could rise to 3.8% in September, as energy prices further increased to 18.8%. This high inflation is putting additional economic pressure on France, where a wave of sovereign bond selling has pushed yields close to 4.9%, raising borrowing costs. The French economy is expected to grow weakly by 0.7% in 2026, complicating the government's efforts to reduce the budget deficit through tax increases and spending cuts.

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