Egypt's Annual Urban Inflation Slows to 14.6% in May

Egypt's annual urban consumer price inflation eased to 14.6% in May 2026 from 14.9% in April, according to data released by the Central Agency for Public Mobilisation and Statistics (CAPMAS). While the annual rate declined, monthly urban inflation accelerated to 1.6% from 1.1% in April.

National inflation also slowed, reaching 13% in May compared with 13.4% the previous month. The overall consumer price index for the country rose 1.4% month on month to 292 points.

CAPMAS attributed the monthly increase largely to higher food prices. Meat and poultry prices rose by 3.5%, fruit by 12.7% and vegetables by 1.7%. Increases were also recorded in clothing, utilities and household goods, while prices fell for organised tourist trips, personal effects, hotel services and transport services. Core inflation, calculated by the Central Bank of Egypt, remained unchanged at 13.8% year on year in May.

The monthly core inflation rate stood at 1.6%, matching the level recorded in May 2025. Last month, the central bank left interest rates unchanged for a second consecutive meeting, maintaining rates of 19% for overnight deposits, 20% for overnight lending and 19.5% for the main operation and discount rates.

The bank said recent inflation readings were broadly in line with its expectations and reiterated that annual headline inflation is likely to continue rising until the third quarter of 2026 due to base effects, supply disruptions, exchange rate movements and fiscal measures.

According to the central bank, inflation is expected to remain above its target range during the final quarter of 2026 before slowing gradually in early 2027 and moving closer to target levels in the second half of the year.