Egypt’s urban headline inflation rises to 13.4% in February 2026

Egypt’s annual urban headline inflation accelerated to 13.4% in February 2026, up from 11.9% in January, driven by seasonal rises in food and non-food prices. Food inflation reached 4.6%, while non-food inflation climbed to 19.3%.

The Central Bank of Egypt reported that annual urban headline inflation reached 13.4% in February 2026, up from 11.9% in January, fueled by seasonal increases in food and non-food prices. Food inflation rose to 4.6% from 1.9%, driven mainly by higher poultry and fresh vegetable prices amid Ramadan demand, while non-food inflation climbed to 19.3% from 18.6%, attributed to an 18.7% rise in education fees and an 8% increase in related goods and services. Monthly urban headline inflation accelerated to 2.8% from 1.2% in January, propelled by higher food prices, rents up 2.9%, education costs, and a 3.2% tobacco price hike contributing 0.19 percentage points. Annual core inflation increased to 12.7% from 11.2%, with monthly core at 3.0% from 1.2%. Rural headline inflation edged up to 9.7% from 8.4%, lifting nationwide inflation to 11.5% from 10.1%. Poultry prices surged 18.3% monthly, exceeding the historical February range of 5-9% and contributing 0.83 percentage points, while fresh vegetables rose 5.6%.

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The U.S. Bureau of Labor Statistics reported that the Consumer Price Index for February 2026 rose 0.3% month-over-month and remained at 2.4% year-over-year, matching economist expectations. Core CPI, excluding food and energy, increased 0.2% monthly and stayed at 2.5% annually. While inflation showed stability before the recent U.S.-Israel-Iran war, surging oil prices are expected to push future readings higher.

Annual urban headline inflation in Egypt remained stable at around 12.3% in December 2025, virtually unchanged from November, according to the Central Bank of Egypt. The dynamics continue to be driven primarily by non-food prices, as food inflation has fallen back to pre-2022 levels. Annual food inflation declined sharply to 1.5%.

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Egypt's annual urban headline inflation eased to 12.3% in November 2025 from 12.5% in October, the Central Bank of Egypt (CBE) confirmed, aligning with prior CAPMAS data. Food inflation slowed sharply to 0.7% from 1.5%, non-food to 20.2% from 20.4%, while monthly headline inflation fell to 0.3% from 1.8%.

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Egypt's Central Bank Monetary Policy Committee is expected to hold interest rates unchanged at its Thursday meeting, following cuts in December 2025 and February 2026. The decision comes amid rising core inflation and geopolitical risks. Experts describe the hold as the most prudent option to maintain stability.

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