Egyptian inflation slowed for a second straight month to its lowest level since February, riding out renewed price pressures amid an escalation in the Iran war.
Consumer costs in urban areas rose an annual 13.9% in September versus 14.5% in August, state statistics agency CAPMAS said Saturday. On a monthly basis, prices increased 1.3% compared with 0.1% in August.
Inflation in the Middle East’s most populous nation has veered between acceleration and slowing since the US and Israel launched strikes on the Islamic Republic in late February, roiling global energy and financial markets.
The latest data marks the sixth easing of the headline figure in 2026, mirroring the trajectory in January, April, May, June and August.
It wasn’t immediately clear what drove the slowing.
Food and beverage prices, the largest component of the inflation basket, increased 7.2% in September compared with 6.3% in August. On a monthly basis they rose 2.8% versus a 1.1% drop.
The data also comes after a 12% increase in electricity prices for higher-consuming households announced at the end of July. Egypt, until recently a net gas exporter, has become more dependent on imports to generate power.
Read More: Egypt Extends Rate Pause as Iran War Escalation Raises Risks
Egypt’s central bank paused a gradual, nearly yearlong monetary-easing cycle when the Iran war erupted.
Holding interest rates on Sept. 24, the regulator also revised down its inflation expectations. It said the headline figure was projected to stabilize on average in the third quarter and then gradually slow toward a target of 7%, plus or minus two percentage points, in the second half of 2027.