Egypt’s urban headline inflation accelerated to thirteen point four percent in February 2026, up from eleven point nine percent in January, driven primarily by seasonal increases in both food and non-food prices, according to data released by the Central Bank of Egypt.
Food inflation rose to four point six percent year-on-year, reflecting higher poultry and fresh vegetable prices, consistent with heightened demand during the Ramadan period, while most other food categories remained relatively stable. Non-food inflation climbed to nineteen point three percent, largely due to an eighteen point seven percent rise in education fees and an additional eight percent increase in education-related goods and services, including books, uniforms, and stationery.
On a monthly basis, urban headline inflation rose to two point eight percent in February, compared with one point two percent in January, reflecting a combination of higher food prices, increased rents, rising education costs, and an official hike in tobacco prices. Annual core inflation—excluding volatile food and energy components—also accelerated to twelve point seven percent from eleven point two percent in January, with monthly core inflation rising to three point zero percent. Core food items contributed one point two three percentage points (p.p.), services one point three nine p.p., and retail items zero point three four p.p. to monthly core inflation.
Rural headline inflation increased to nine point seven percent from eight point four percent in January, bringing nationwide headline inflation—which averages urban and rural rates—to eleven point five percent, up from ten point one percent the previous month.
Monthly inflation drivers
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Food prices rose two point eight percent month-on-month in February, up from two point three percent in January, contributing one point zero four p.p. to headline inflation. Volatile food prices increased two point six percent, with fresh vegetables rising five point six percent while fresh fruits declined two point one percent, contributing a net zero point one five p.p. Poultry prices surged eighteen point three percent in February, compared with eleven point six percent in January, contributing zero point eight three p.p.
Non-food inflation also rose two point eight percent monthly, up from zero point five percent in January, contributing one point seven six p.p. Education costs were the main driver, with fees up eighteen point seven percent and related goods and services increasing eight percent, accounting for one point one six p.p. Tobacco prices rose three point two percent, adding zero point one nine p.p., while rents increased two point nine percent, contributing zero point two seven p.p.
Annual inflation dynamics
Year-on-year, food inflation increased to four point six percent in February from one point nine percent in January, contributing one point eight one p.p. to headline inflation. Volatile food prices rose sixteen point nine percent (zero point nine five p.p.), reflecting seasonal fluctuations in fruit and vegetable prices, while core food items—including seafood, beef, and dairy—rose two point seven percent, contributing zero point eight six p.p.
Non-food inflation climbed to nineteen point three percent, up from eighteen point six percent in January, contributing eleven point six three p.p. Services inflation reached twenty-two point seven percent, adding six point one six p.p., as rent, transport, and dining costs gradually eased from prior increases. Regulated prices rose fifteen point one percent, contributing three point two two p.p., slightly down from fifteen point four percent in January, as earlier fiscal consolidation measures on LPG and transport softened. Retail inflation remained broadly stable at fifteen point nine percent, adding two point two five p.p.
Core inflation at twelve point seven percent was mainly driven by services and retail components, contributing eight point four four p.p. and three point zero eight p.p., respectively, alongside one point one seven p.p. from core food.
The February inflation data reflects seasonal demand pressures, particularly related to Ramadan, as well as structural factors such as rising education costs and regulated price adjustments. Analysts note that these trends may influence the Central Bank of Egypt’s monetary policy decisions in the coming months, particularly as the central bank monitors inflation expectations and price stability.
