Egypt's annual headline inflation rate increased to 12.8 percent in September 2026, from 12.7 percent in August. The Central Agency for Public Mobilization and Statistics (CAPMAS) reported that consumer prices rose 1.5 percent month-on-month. This increase was mainly driven by a sharp rise in vegetable prices. The general consumer price index (CPI) for the whole republic reached 294.2 points in September.
Vegetable prices surged 15.1 percent month-on-month, while fruit prices rose 2.6 percent. Other food categories also saw price increases, including meat and poultry (2.5 percent), fish and seafood (1.2 percent), cereals and bread (0.4 percent), and milk, cheese, and eggs (0.4 percent). The food and beverages division rose 3.2 percent month-on-month, contributing to the overall increase in consumer prices.
Outside the food sector, prices also increased in various categories. Clothing and footwear prices rose 0.8 percent, while housing, water, electricity, gas, and other fuels increased 0.8 percent. Additionally, furnishings and household equipment prices climbed 1.2 percent, and health costs rose 0.4 percent. Transport prices rose 0.1 percent, while recreation and culture recorded a 0.4 percent increase.
On an annual basis, housing, water, electricity, gas, and other fuels recorded the sharpest increase, rising 29.6 percent in September compared with the same month in 2025. Actual housing rents increased 27.5 percent, while electricity, gas, and other fuels rose 22.6 percent. Transport prices climbed 21.3 percent year-on-year, while education costs increased 20 percent.
Food and beverage prices increased 7.9 percent year-on-year in September, with vegetable prices surging 30.9 percent. Other food categories also saw annual price increases, including coffee, tea, and cocoa (9.7 percent), mineral water, carbonated drinks, and natural juices (9 percent), and fruit (7.2 percent). Meat and poultry prices rose 6.2 percent, while cereals and bread prices increased 3.3 percent.
The Central Bank of Egypt (CBE) kept its key interest rates unchanged in September, citing a sufficiently tight monetary stance to support the continued decline in inflation rates. The CBE expected annual headline inflation to remain broadly stable in the third quarter of 2026 before gradually declining toward its target of seven percent, plus or minus two percentage points, in the second half of 2027.
The Monetary Policy Committee (MPC) revised its inflation outlook downward, citing inflation readings that were more favourable than previously anticipated. The MPC's next meeting is scheduled for 29 October. The inflation rate increase comes as Egypt continues to navigate economic challenges, with the World Bank Group mobilizing $6.7 billion in private capital for Egypt since FY2022.
Key points
- Egypt's annual inflation rate increased to 12.8% in September 2026.
- Vegetable prices surged 15.1% month-on-month and 30.9% year-on-year.
- The Central Bank of Egypt kept its key interest rates unchanged in September.
