Global inflationary pressures are building again, with year-on-year inflation across the OECD rising to 4.0pc in March 2026, up from 3.4pc in February, driven largely by a renewed surge in energy costs.
The latest data shows inflation increasing in 33 of 37 OECD countries with available monthly figures, underscoring the broad-based nature of the pickup and raising concerns that the post-pandemic disinflation trend may be stalling.
The acceleration was led by energy inflation, which jumped sharply by 8.6 percentage points across the OECD, reaching 8.1pc — its highest level since February 2023.
Energy prices rose in 32 of 35 OECD countries with available data, with seven economies recording double-digit energy inflation. Only Costa Rica and Slovenia saw declines, while Colombia remained broadly stable.
The data suggests renewed volatility in global energy markets is once again becoming a key driver of headline price pressures, reversing much of the easing seen over the past year.
In the G7, headline inflation rose from 2.1pc to 2.8pc in March, with every member country recording an increase.
The United States saw energy inflation surge to 12.5pc, while France and Germany both recorded readings above 7pc. Despite this, Japan and Italy continued to record negative energy inflation, supported by government subsidies.
Core inflation — excluding food and energy — remained the dominant driver of price growth across the G7, highlighting persistent underlying pressure in services and domestically generated costs.
Inflation in the euro area, measured by the Harmonised Index of Consumer Prices (HICP), rose to 2.6pc in March from 1.9pc in February, its highest level since mid-2024.
Energy inflation in the bloc surged to 5.1pc, marking its first positive reading since early 2025. Food inflation eased to 2.2pc, while core inflation remained broadly stable at 2.3pc.
Preliminary estimates for April suggest further upward pressure, with euro area inflation expected to reach 3.0pc, driven again by a sharp increase in energy costs.
Across the G20, inflation rose to 4.0pc in March, up from 3.7pc in February, with mixed regional trends beneath the headline figure.
Inflation fell in Indonesia, Argentina and China, but rose in Brazil and India, while remaining broadly stable in Saudi Arabia and South Africa.
The data points to a global inflation environment still highly sensitive to energy markets, with geopolitical tensions and supply disruptions continuing to feed through into consumer prices.
While food inflation has generally eased across many economies and core inflation remains relatively stable, the renewed energy shock risks complicating central banks’ efforts to fully contain inflationary pressures.
