CBE Details Drivers Behind Egypt’s Inflation Surge

Egypt’s annual urban inflation accelerated to 15.2% in March 2026, up from 13.4% in February, driven primarily by rising fuel and food costs, according to a report released by the Central Bank of Egypt.

The Central Bank of Egypt (CBE) attributed the increase to a combination of seasonal pressures and recent administrative price adjustments. Food prices rose by 5.8% year-on-year, while non-food items recorded a sharper increase of 21.5%, highlighting broad-based inflationary pressures across the economy.

On a monthly basis, urban inflation climbed to 3.2% in March, compared with 2.8% the previous month. The rise was largely fueled by a 4.8% increase in food prices. Meanwhile, core inflation reached 14.0% annually, reflecting higher costs in both essential goods and services, despite a slight slowdown in its monthly pace to 2.0%.

According to the CBE, food inflation contributed approximately 1.74 % to the overall monthly rate. Prices of fresh produce surged significantly, with vegetables and fruits rising by 16.8%, including a notable 26% increase in vegetable prices, well above typical seasonal patterns.

Poultry and egg prices also continued their upward trend for the third consecutive month, increasing by 10.4% and 1.8% respectively, further pushing the headline inflation rate higher.

In the non-food segment, monthly inflation eased slightly to 2.3% but remained elevated due to administrative price adjustments. A key factor was a 14.7% increase in fuel prices following decisions by the Ministry of Petroleum and Mineral Resources to raise gasoline and diesel prices. This was accompanied by an 11.5% increase in public transport fares and a 21.4% rise in household gas and butane cylinder prices.

Rising fuel costs spilled over into the services sector, which recorded a 2% monthly increase. Higher operating costs pushed up prices in restaurants and cafés, alongside modest increases in rental prices.

Consumer goods prices also edged up by 0.8%, driven by higher costs for clothing, footwear, and personal care products, contributing to overall core inflation dynamics.

On an annual basis, non-food items accounted for 12.81% of total inflation, underscoring their dominant role in the current inflation cycle. Service sector inflation surged to 24.4%, reflecting cumulative increases in education, transportation, and housing costs.

Administered prices rose by 19% year-on-year, influenced largely by energy products and tobacco, while consumer goods inflation held at 16.1%.

CBE noted that the combined impact of energy price adjustments and persistent food cost pressures continues to shape Egypt’s inflation trajectory, with implications for monetary policy and household purchasing power in the months ahead.