The Central Bank of Egypt (CBE) has explained why annual headline inflation in Egypt's cities slowed to 13.9% in September 2026 from 14.5% in August, attributing the decline mainly to lower non-food inflation alongside a favourable base effect.

In its monthly inflation analysis, the CBE said annual core inflation fell to 14.1% in September from 14.9% in August, driven by the favourable base effect and lower non-food inflation, which offset the impact of a slight rise in core food inflation.

The CBE said annual non-food inflation fell to 18% in September 2026 from 19.5% in August, its lowest level since January 2023.

Annual services inflation also fell to 24.4% in September from 27.8% the previous month, while inflation for regulated goods and services dropped to 12% from 12.3% in August. Consumer goods inflation, by contrast, held steady at 12.2% in September, compared with 12.1% in August.

On the other hand, annual food inflation rose to 7.2% in September 2026 from 6.3% in August, as prices of fresh vegetables, fruit and core food items increased.

Monthly food inflation was 2.8% in September, compared with a contraction of 1.1% in August, following three consecutive months of falling prices.

Inflation for vegetables and fruit rose to 11.3%, contributing about 0.69 percentage points to monthly headline inflation, driven mainly by a 17.8% increase in fresh vegetable prices.

Core food prices rose by 1.1% in September, contributing about 0.30 percentage points to monthly headline inflation. The increase was higher than its usual seasonal pattern, owing to higher prices of poultry, fish and seafood.

Monthly urban headline inflation was 1.3% in September 2026, compared with 1.8% in the same month of 2025 and 0.1% in August 2026, while lower non-food inflation partly offset the impact of higher food prices.

Monthly core inflation was 0.8% in September, compared with 1.5% in September 2025 and 0.3% in August 2026.

Services inflation rose by 0.5% in September, contributing about 0.16 percentage points to monthly headline inflation, reflecting the amendment of the old rent law and its effect on the rents group, as well as higher prices for outpatient clinic services.

Consumer goods inflation rose by 0.9%, driven by higher prices of household cleaning products, personal care products and school supplies, while regulated goods and services rose by 0.1%, owing to a 2.3% increase in public hospital service prices.

In rural areas, annual headline inflation rose to 11.6% in September 2026 from 10.9% in August.

Nationwide annual headline inflation, which reflects average urban and rural inflation, held steady at 12.8% in September, compared with 12.7% in August.

The data reflect mixed price movements in September: lower non-food and services inflation helped slow annual urban inflation, while higher food prices put pressure on price levels during the month.