CAIRO: Egypt’s core inflation rate slowed to 11.2% year on year in January 2026, down from 11.8% in December, according to data released by the Central Bank of Egypt. The reading is closely watched as a gauge of underlying price trends and comes as policymakers track inflation across food, housing, and other consumer categories.
On a monthly basis, core consumer prices rose 1.2% in January, compared with 0.2% in December 2025. The central bank said the monthly core measure was 1.7% in January 2025. Core inflation is designed to strip out volatile items such as fruits and vegetables and exclude administratively set prices including some energy and utility components, providing a narrower view of price movements.
Separate figures from the Central Agency for Public Mobilization and Statistics showed Egypt’s annual headline inflation rate eased to 10.1% in January from 10.3% in December. The nationwide consumer price index rose to 268.1 points in January from 264.2 points a month earlier. On a month on month basis, headline inflation accelerated to 1.5% in January from 0.1% in December.
Urban inflation, a commonly cited measure in Egypt’s inflation reporting, also edged lower on an annual basis. CAPMAS data showed annual urban inflation slowed to 11.9% in January from 12.3% in December. CAPMAS said the monthly rise was driven primarily by higher food and beverage prices, which increased 2.7% in January compared with the prior month.
Food prices lift monthly index
CAPMAS attributed January’s month on month increase to higher prices across several food categories, including vegetables, meat and poultry, and hot beverages. Vegetables rose 8.5% after declining in December, while meat and poultry increased 5.1%. Coffee, tea and cocoa climbed 6.7%. Offsetting moves included a 2.5% decline in fruit prices. CAPMAS also reported increases in housing related costs, with actual rents up 1.6% and imputed rents up 1.9%.
Beyond food and housing, CAPMAS reported additional increases in services and consumer goods during January. Hospital services rose 3.4% and outpatient clinic services increased 1.0%. Clothing and accessories rose 1.4% and ready made clothing increased 1.1%, while transport services rose 0.3%. Some durable items provided limited relief, with home appliances down 0.4% for the month, continuing a soft patch seen in the previous month.
Rates remain elevated after 2025 cuts
Egypt’s inflation backdrop is being monitored alongside monetary policy settings. In its most recent rate decision on Dec. 25, 2025, the central bank cut its overnight deposit rate to 20.00% and the overnight lending rate to 21.00%, and set the main operation rate at 20.50%. The discount rate was also reduced to 20.50%. The central bank’s monetary policy committee is scheduled to review interest rates on Feb. 12.
The latest data underline how far inflation has eased from recent highs while remaining uneven across spending categories. CAPMAS data previously showed annual urban inflation peaked at 38.0% in September 2023. Core inflation also declined sharply over the past year, with central bank records showing annual core inflation at 22.6% in January 2025 compared with 11.2% in January 2026, even as monthly price gains strengthened at the start of this year.