OECD reports energy costs driving inflation due to geopolitical shipping threats

The Organisation for Economic Co-operation and Development reported that sharp increases in energy costs are driving cost-of-living pressures across its member countries in 2026. Headline inflation across the OECD reached 4.3 percent through August, with energy prices climbing 13.6 percent compared with a year earlier. The OECD attributes this surge to geopolitical disruptions in the Middle East, including threats to shipping through the Strait of Hormuz and damage to energy infrastructure. These supply constraints have increased the cost of fuel, electricity, fertilizers, and other industrial inputs.

The energy surge is pushing up input costs for industries and driving higher food and broader consumer prices across the OECD. This inflationary pressure is occurring despite the OECD noting that labor markets have remained strong and employment is at record highs.