Ahmed Kamel – Egypt Daily News
Egypt’s annual core inflation rate declined to 11.2 percent at the end of January 2026, down from 11.8 percent in December 2025, signaling a continued moderation in underlying price pressures, according to data released by the Central Bank of Egypt.
In a statement, the central bank said the monthly change in the core consumer price index, which it compiles, reached 1.2 percent in January 2026. This compares with 1.7 percent in January 2025 and 0.2 percent in December 2025, reflecting a faster pace of price increases on a monthly basis than at the end of last year, but still lower than levels recorded a year earlier.
Core inflation excludes volatile items such as food and energy, and is closely monitored by policymakers as an indicator of more persistent inflationary trends. The latest reading suggests that while price pressures remain, they are gradually easing compared to recent months.
Headline inflation figures released separately by the Central Agency for Public Mobilization and Statistics showed a similar trend. The monthly change in the overall urban consumer price index stood at 1.2 percent in January 2026, compared with 1.5 percent in January 2025 and 0.2 percent in December 2025. On an annual basis, urban headline inflation slowed to 11.9 percent in January, down from 12.3 percent the previous month.
Economists say the easing in both core and headline inflation reflects a combination of factors, including base effects, tighter monetary conditions, and a relative stabilization in some commodity prices. However, the higher monthly readings compared with December suggest that inflationary risks have not fully dissipated, particularly amid ongoing adjustments in domestic prices and global economic uncertainty.
The inflation data will be closely watched ahead of upcoming monetary policy decisions, as the Central Bank of Egypt balances efforts to curb inflation with the need to support economic growth and investment. The bank has repeatedly emphasized its commitment to price stability as a cornerstone of its monetary policy framework.
