A new report from the Organisation for Economic Co-operation and Development (OECD) forecasts a dip in economic growth and inflation in advanced G20 economies.

According to the report: “In advanced G20 economies, aggregate economic growth is projected to moderate…annual [G20] GDP growth is projected to slow from 2.8% in 2024 to 1.8% in 2025 and 1.5% in 2026.”

On inflation the OECD forecast that: “Inflation in most G20 economies is projected to fall as economic growth and labour markets continue to soften…headline inflation is expected to decline from 3.4% in 2025 to 2.9% in 2026, while core inflation in advanced G20 economies remains broadly stable, easing only slightly from 2.6% to 2.5%.”

Headline inflation includes volatile itemssuch as food and fuel. Core inflation strips those out.