People shop near prices displayed in a supermarket on February 13, 2023 in Los Angeles, California.
OECD Secretary-General Mathias Cormann said the global economic outlook is "slightly brighter" this year but inflation challenges remain.
"The outlook for the world is slightly brighter at the beginning of 2023 than what we thought it would be just two or three months ago," he told CNBC's "Street Signs Asia" on Friday.
"Indeed, energy and food prices are substantially lower than what they were at their peaks," noted the OECD chief, ahead of a G-20 financial leaders meeting this week in Bengaluru, India.
Energy prices have fallen significantly because Europe was able to "successfully" diversify its sources of energy, Cormann noted. In addition, a "benign winter" helped to reduce energy demand which kept gas prices low, he said.
In November, the OECD said "Russia's war of aggression against Ukraine has provoked a massive energy price shock not seen since the 1970s."
"The global economy is projected to grow well below the outcomes expected before the war – at a modest 3.1% this year [2022], before slowing to 2.2% in 2023 and recovering moderately to a still sub-par 2.7% pace in 2024," it added.