Egypt Inflation Rate Above Forecasts

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.

Egypt’s annual urban inflation rate rose to 13.4% in February 2026 from 11.9% in the previous month, well above the market forecast of 12%. This marked the highest reading since July 2025, as prices increased at a faster pace for food and non-alcoholic beverages (4.6% vs 1.9% in January), housing and utilities (31.7% vs 29.8%), clothing and footwear (14.2% vs 14.1%), miscellaneous goods and services (10.9% vs 10.4%), and recreation and culture (15.1% vs 14.8%). At the same time, inflation remained steady for transport (27.5%), restaurants and hotels (11.9%), furnishings, household equipment, and routine maintenance (10.8%), and communications (0.4%). Meanwhile, costs eased for alcoholic beverages, tobacco, and narcotics (15.7% vs 18.7%) and health (17.8% vs 18.4%). On a monthly basis, consumer prices rose 2.8% in February, accelerating from a 1.2% gain in January and marking the fastest monthly increase since February 2024.