Egypt’s annual urban inflation eased to 11.9% in January 2026, down from 12.3% in December 2025, according to the Central Agency for Public Mobilisation and Statistics (CAPMAS).
In a statement issued on Tuesday, CAPMAS said the overall consumer price index (CPI) for the Arab Republic of Egypt reached 268.1 points in January 2026, bringing nationwide annual inflation to 10.1%, compared with 10.3% in December 2025.
Core CPI inflation declined to 11.2% in January 2026, from 11.8% in December 2025. Monthly core CPI inflation, calculated by the Central Bank of Egypt (CBE), stood at 1.2% in January 2026, compared with 1.7% in January 2025 and 0.2% in December 2025.
According to CAPMAS, monthly headline inflation rose to 1.5% in January 2026, up from 0.1% in December 2025.
The agency attributed the monthly increase to higher prices across several food categories, including cereals and bread (0.1%), meat and poultry (5.1%), fish and seafood (1.7%), dairy, cheese and eggs (0.5%), oils and fats (0.2%), vegetables (8.5%), coffee, tea and cocoa (6.7%), and tobacco (0.7%).
Price increases were also recorded for fabrics (0.8%), ready-made garments (1.1%), clothing and related items (1.4%), cleaning, repair and clothing rental services (1.0%), footwear (0.4%), actual rents for housing (1.6%), imputed rents for housing (1.9%), housing maintenance and repair (0.8%), electricity, gas and other fuels (0.1%), furniture, furnishings, carpets and floor coverings (0.2%), household textiles (0.5%), glassware, tableware and household utensils (0.4%), tools and equipment for home and gardens (0.7%), and goods and services used in house maintenance (0.4%).
In addition, prices increased for outpatient services (1.0%), hospital services (3.4%), transport services (0.3%), postal services (1.4%), telephone and fax service equipment (1.3%), audio-visual, photographic and information-processing equipment (1.2%), cultural and recreational services (0.2%), newspapers, books and stationery (0.1%), ready-made meals (0.4%), hotel services (0.8%), and personal care (0.6%).
By contrast, prices declined for fruit by 2.5% and household appliances by 0.4%.
Meanwhile, the Central Bank of Egypt cut its key policy rates by 100 basis points on 25 December, lowering the overnight deposit rate to 20%, the lending rate to 21%, and the credit and discount rate and main operation rate to 20.5%.
In its accompanying statement, the central bank said the rate cut was appropriate to maintain a monetary policy stance that anchors inflation expectations and supports the disinflation path. It added that demand-side inflationary pressures are expected to remain limited under the current policy framework.
The CBE noted that the recent moderation in monthly inflation developments compared with typical seasonal patterns points to improved inflation expectations and the gradual fading of the effects of previous shocks.
It expects inflation to decline towards its target of 7% (± 2%) on average in the fourth quarter of 2026, although the pace of disinflation may remain constrained by the slow easing of non-food inflation and the impact of fiscal consolidation measures. Global geopolitical tensions also continue to pose upside risks to inflation expectations.
The central bank said it will continue to assess the pace of monetary easing based on forecasts, associated risks and incoming data, stressing that it stands ready to use all available tools to achieve price stability and guide inflation towards its target.
