Inflation in the countries that make up the G20 will decrease, driven by Argentina, according to the OECD.
For the firm, in addition to 2026, inflation in the country will also be reduced in 2027.
The Organization for Economic Co-operation and Development (OECD) published its second annual outlook volume on December 1. This projects that inflation will decrease in the countries that make up the G20 in 2026 and 2027, largely due to a reduction in Argentina.
For the institution, Argentina will close 2025 with an annual inflation of 41.7%, 2026 with 17.6% and 2027 with 10%. In this way, it is expected that next year the country will no longer be the one with the most price increases in the G20.
“The initial fiscal consolidation process started at the end of 2023 has been essential to curb high inflation,” the OECD said about the country. This policy, carried out by President Javier Milei, has been acclaimed in different countries, as reported by CriptoNoticias, which urge their governments to do the same.
Against the backdrop of a difficult legacy of macroeconomic imbalances, Argentina has undertaken an ambitious and unprecedented reform process to stabilize the economy. The reforms have begun to bear fruit and the economy is destined for a strong recovery. Inflation has fallen to levels not seen in years.
Organization for Economic Cooperation and Development.
Even so, fiscal policy will require further adjustment to maintain prudence in the medium and long term, while boosting potential economic growth, says the institution. He also emphasizes that monetary policy should focus on maintaining the decline in inflation.
“A comprehensive tax reform, eliminating some especially distorted taxes and expanding the income and consumption tax bases, would improve efficiency and equity,” he mentions. Furthermore, it indicates that compliance with the treasury could be improved by modernizing the tax administration.
According to its forecast, Türkiye will become the G20 country with the highest inflation in 2026. This is despite the fact that it predicts its decrease from 34.5% this year to 20.8% in 2026 and 11.7% in 2027, as seen below.
Brazil and Mexico are also expected to have lower inflation
General inflation remains persistent in some regions, but the institution estimates that in the G20 it will drop from 3.4% in 2025 to 2.8% in 2026 and 2.5% in 2027. This includes, in addition to Argentina, a reduction in the other two Latin American countries that are part of the group.
In Brazil, it is expected that the consumer price increase index will go from 5.1% in 2025 to 4.2% and 3.8% in the next two years. AND, In Mexico, it predicts inflation of 3.8% this year, 3.3% in 2026 and 2.9% in 2027.
The OECD indicated that “central banks should remain attentive to changes in inflation dynamics” to develop their policies: “When core inflation moderates and expectations remain anchored, gradual reductions in monetary policy rates may continue, while economies facing price pressures driven by tariffs may need to be more cautious.”