Urban Inflation in Egypt Slows to 13.9% and Core Drops to 14.1%

Egypt's annual urban inflation rate slowed to 13.9% in September, down from 14.5% in August, according to data from the Central Agency for Public Mobilization and Statistics (CAPMAS) cited by Arab News newspaper.

Core inflation, which excludes volatile items like food and fuel, fell by about 0.8 percentage points to 14.1% on an annual basis, according to the Central Bank of Egypt.

Despite the annual slowdown, monthly inflation accelerated to 1.3% in September from 0.1% in August, after vegetable prices jumped by 15.1%, indicating that price pressures have not yet subsided.

S&P Global expects average inflation in Egypt to reach about 12.9% during the fiscal year 2026/2027, signaling persistent price pressures, albeit at a slower pace than the current year. Monetary authorities have not commented on these forecasts as of publication.

What do these terms mean?

Core Inflation: A measure of price increases that excludes the most volatile goods, such as food and fuel, to show the true trend of prices away from temporary shocks.

Percentage Point: A unit for measuring the difference between percentages. A drop in inflation of 0.8 percentage points from 14.9% to 14.1% represents an actual decline by this amount, not a decrease of 0.8%.

Annual Inflation: The rate of price increases over 12 months compared to the same period in the previous year, which is the most widely used metric for tracking the cost of living.