Egypt Inflation Rate Above Forecasts

Egypt’s annual urban inflation eased to 14.9% in April 2026 from 15.2% in March, which marked a ten-month high, despite inflationary pressure from the Iran conflict. Prices moderated primarily in health (9.3% vs 17% in March) and restaurants & hotels categories (12% vs 12.8%), while transportation inflation remained elevated at 29.2% (vs 39.4% in March). Housing & utilities prices accelerated further (38.5% vs 35.3%), driven by higher electricity costs. The largest component of the inflation basket, food and beverages, climbed by 6.7%, the most in ten months, after a 5.8% rise in March. On a monthly basis, the CPI rose by 1.1%, slowing from a 3.2% surge in the previous month, prompted by a decrease in food and beverage prices.

Egypt’s annual urban inflation rate accelerated to 15.2% in March 2026 from 13.4% in February, above forecasts of 12%. This marked the highest reading since May 2025, amid a surge in oil prices. Egypt raised fuel prices in early March by about 14% to 17% across a wide range of petroleum products, the first increase this year. Inflation accelerated in transport (39.4% vs 27.5% in February), food (5.8% vs 4.6%), housing and utilities (35.3% vs 31.7%), clothing and footwear (14.4% vs 14.2%), miscellaneous goods and services (11.6% vs 10.9%), restaurants and hotels (12.8% vs 11.9%), furnishings and household equipment (11.1% vs 10.8%), and alcoholic beverages, tobacco, and narcotics (16.9% vs 15.7%). Meanwhile, price growth moderated in health (17.0% vs 17.8%) and recreation and culture (15.0% vs 15.1%), while inflation remained steady in communications (at 0.4%). Monthly, CPI rose 3.2% in March, after a 2.8% gain in February, marking the fastest monthly increase since February 2023.

Egypt has raised electricity prices for higher-use households and commercial users from April, as authorities respond to a worsening global energy crisis tied to the Middle East conflict. The move is part of broader efforts to curb consumption and ease mounting fiscal pressure from rising fuel import costs. The electricity ministry said lower-income households would be protected, with no changes for residential usage of up to 2,000 kWh per month. In contrast, tariffs for higher-consumption households will rise by an average of 16%, while commercial electricity prices across all brackets will increase by about 20%. Officials stressed the targeted approach aims to balance cost pressures while maintaining a stable power supply across residential, commercial, and industrial sectors.