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Egypt’s annual urban inflation slowed to 14.6% in May 2026 from 14.9% in April, slightly above market expectations of 14.5%. It was the lowest inflation rate since February, as the impact of higher fuel prices continued to fade, with transport inflation easing to 24.7% in May from 29.2% in April. Egypt raised fuel prices in early March by about 14% to 17% across a wide range of petroleum products, marking the first increase this year, amid elevated global oil prices. Inflation also moderated for health (4.1% vs 9.3%), restaurants & hotels (11.7% vs 12.0%), and recreation and culture (8.3% vs 16.2%) categories. However, housing and utility prices accelerated further (40.4% vs. 38.5%), driven by higher electricity costs. The largest component of the inflation basket, food and beverages, increased by 7.6%, the most in a year, after a 6.7% rise in April. On a monthly basis, the CPI rose 1.6%, accelerating from a 1.1% increase in the previous month.
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