Egypt’s annual urban consumer price inflation eased to 14.6% in May 2026 from 14.9% in April, the Central Agency for Public Mobilisation and Statistics (CAPMAS) said in a statement on Wednesday, even as inflation on a monthly basis accelerated to 1.6% from 1.1% the previous month.
Annual inflation for the country as a whole recorded 13% in May, down from 13.4% in April, the agency said, adding that the general consumer price index for the whole republic reached 292.0 points in May, an increase of 1.4% over April.
Monthly core consumer price inflation, computed by the Central Bank of Egypt (CBE), recorded 1.6% in May 2026, compared with 1.1% in April 2026 and matching the rate recorded in May 2025. On an annual basis, core inflation remained steady at 13.8% in May, unchanged from April.
CAPMAS attributed the monthly rise chiefly to higher prices across food categories, with cereals and bread up 0.3%, meat and poultry up 3.5%, fish and seafood up 1.3%, oils and fats up 0.5%, fruit up 12.7%, vegetables up 1.7%, sugar and sugary foods up 0.1%, mineral and carbonated water and natural juices up 1.2%, and tobacco up 0.2%.
Prices also rose for fabrics by 1.7%, ready-made clothing by 1.7%, housing maintenance and repair by 0.8%, electricity, gas and other fuels by 1.0%, home furnishings by 0.5%, household appliances by 0.9%, household and garden tools and equipment by 1.6%, goods and services used in household maintenance by 1.5%, and outpatient services by 0.7%.
Increases were further recorded in vehicle purchases at 1.0%, private transport expenditure at 0.5%, telephone and fax equipment at 2.7%, telephone and fax services at 10.4%, audio-visual, photographic and information-processing equipment at 1.2%, ready meals at 1.1%, and personal care at 1.3%.
By contrast, prices fell for organised tourist trips by 0.9%, personal effects by 0.3%, hotel services by 0.2%, and transport services by 0.2%.
The CBE had expected annual headline inflation to accelerate until the third quarter of 2026, which it attributed partly to unfavourable base-period effects, as well as supply pressures stemming from the current conflict and the subsequent exchange-rate movements and fiscal consolidation measures.
On 21 May, the central bank decided to keep its key interest rates unchanged – a strong indicator of the short-term direction of interest on the Egyptian pound – holding them at 19% for deposits, 20% for lending, and 19.5% for the credit and discount rate and the rate of the main operation. It was the second consecutive hold, following a similar decision on 2 April.
The bank said the decision was consistent with its view of the latest inflation developments and outlook, amid an external environment characterised by uncertainty.
The CBE expects annual headline inflation to exceed its target of 7%, plus or minus 2 percentage points, on average during the final quarter of 2026, before beginning to slow gradually in the first quarter of 2027 and approaching the target during the second half of that year.
It explained that this path would be supported by monetary tightening, alongside continuous assessment of the sources of price pressures and monthly inflation developments, the anchoring of inflation expectations, and a firm commitment to exchange-rate flexibility.
The bank noted, however, that the projected inflation path remains subject to upside risks, including the possibility of the conflict persisting for a longer period and the effects of fiscal consolidation measures exceeding expectations.
On global inflation developments, the CBE said recent increases had prompted central banks to adopt cautious monetary policies. On the commodities front, energy markets witnessed a degree of volatility, with Brent crude and natural gas prices rising sharply amid escalating geopolitical tensions that affected global energy supplies. At the same time, agricultural commodity prices came under upward pressure, driven partly by higher fertiliser costs following the rise in gas prices, alongside increasing risk premiums on international trade.
The central bank said the global inflation outlook remains subject to risks, notably escalating geopolitical tensions, supply chain disruptions, and adverse shifts in trade policies.
According to the CBE, the Monetary Policy Committee opted to keep key rates unchanged for the second consecutive time, basing its decision partly on the factors feeding inflationary pressures and actual inflation developments, particularly amid the prevailing uncertainty. It noted that this approach allows room to assess the indirect effects of the current supply shock and their impact on inflation developments, especially in light of a positive real interest rate margin over the forecast horizon.
The CBE affirmed that the committee will continue to assess its decisions in a manner that helps inflation converge towards its target level during the second half of 2027, taking into account economic developments, the expected inflation path, and the risks surrounding it.
