CBE: Egypt's Urban Inflation Slows to 14.3% in June 2026

Egypt's annual urban headline inflation eased to 14.3% in June 2026, down from 14.6% in May, as slower food price growth helped offset rising costs across non-food sectors, according to the Central Bank of Egypt (CBE).

On a monthly basis, urban headline inflation recorded -0.4% in June, compared with 1.6% in May. Annual food inflation slowed to 5.4% from 7.6%, while annual non-food inflation increased to 19.9%, up from 19.1%.

Food prices declined 3.2% during the month, reducing monthly headline inflation by 1.19 percentage points. The drop was driven by an 8.7% decline in volatile food prices, including a 14.2% fall in vegetable prices, while fresh fruit prices rose 1.3%. Core food prices also fell 2.1%, marking their steepest monthly decline since May 2024, as poultry prices dropped 12.5% and egg prices fell 10.3%.

By contrast, monthly non-food inflation rose 1.3%, driven primarily by services, which increased 2.1%. The CBE attributed the rise to higher rents following the continued pass-through of previous adjustments to the Old Rent Law, seasonal Hajj and Umrah travel costs, and increased spending at restaurants and cafés. Retail prices also rose 1.1%, supported by higher prices for household cleaning products, clothing, footwear and personal care items.

Monthly core inflation slowed to 0.3% in June, compared with 1.6% in May, although annual core inflation edged up to 14.3% from 13.8%, reflecting what the CBE described as an unfavourable base effect.

Outside urban areas, annual rural headline inflation eased to 10.1% in June from 11.4% in May. As a result, Egypt's nationwide annual headline inflation, which combines urban and rural figures, declined to 12.2%, down from 13.0% in the previous month.