SYDNEY — The Organisation for Economic Co-operation and Development has named sharp increases in energy costs as the primary driver of the renewed cost-of-living pressures weighing on households across its member countries in 2026, according to recent data and analysis from the Paris-based body.

Headline inflation across the OECD rose to 4.3 percent in the year to August, up from 4.1 percent in July, the organisation reported. Energy prices accounted for the bulk of the acceleration, climbing 13.6 percent compared with a year earlier — the strongest increase since early 2023 in several major economies. Of the 37 OECD countries with available data, 28 recorded higher energy inflation, with particularly steep rises in Australia, Belgium, Denmark, Italy, Spain and Türkiye.

The OECD has linked the latest energy surge to ongoing geopolitical disruptions in the Middle East, including threats to shipping through the Strait of Hormuz and damage to energy infrastructure. These supply constraints have pushed up not only fuel and electricity prices but also the cost of fertilisers and other industrial inputs, feeding through into higher food and broader consumer prices.

"OECD labour markets have been strong and resilient — employment is at record highs and unemployment rates are near historic lows," OECD Secretary-General Mathias Cormann said in recent remarks. "But workers' purchasing power is not keeping up. The answer is boosting labour productivity with better education policies, adult learning options, job mobility and technology adoption."

Real wages remain a central concern. Across the OECD, real wages in the first........

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