Egypt's Annual Urban Inflation Slows to 13.9% in September

what happened

Egypt's annual urban headline inflation dropped to 13.9% in September 2026 from 14.5% in August, the Central Bank of Egypt said, as reported by Reuters. The main reason was slower non-food inflation, which eased to 18% from 19.5%, together with a favourable base effect.

Food prices moved the other way, with the annual rate rising to 7.2% from 6.3%. On a monthly basis, urban inflation reached 1.3% against 0.1% in August. Food prices climbed 2.8% after three months of decline, driven mainly by fresh vegetables, which rose 17.8%.

Annual core inflation fell to 14.1% from 14.9%. Rural inflation, however, accelerated to 11.6% from 10.9%, while the nationwide rate was broadly stable at 12.8% compared with 12.7% in August.

why it matters

Markets watch these releases for signals on price trends in one of Africa's largest economies. The slowdown in non-food inflation to its lowest level since January 2023 may ease pressure on the central bank's rate decisions, but the rise in food and rural prices points to persistent risks. The Egyptian pound and local debt markets typically respond to such data.

market impact

Egyptian pound and bonds: slower inflation may shift expectations for Central Bank of Egypt rate decisions

tags

instruments