Inflation at 12 percent
driven by food and housing

Lower than last year

Expected to drop further in 2026

The consumer price index (CPI), a proxy for inflation, recorded an annual increase of 12.2 percent in 2025, according to the Central Administration of Statistics. It was 18.1 percent in 2024.

The World Bank expects the inflation rate to ease further in 2026 and reach single digits for the first time since 2019. According to the United Nations’ World Economic Situation and Prospects report for 2026, the consumer price inflation is anticipated to fall to 8.6 percent this year and 4.2 percent in 2027.

The 2025 increase was mainly driven by a higher cost of food and non-alcoholic beverages and by a rise in rent. The cost of education as well as the cost of recreation, amusement, and culture, which surged at higher rates also contributed to the rise in CPI, although they represent a smaller portion of the consumer basket and have a lower weight in the calculation of the price index.


Source: Central Administration of Statistics

The only categories that witnessed a decrease in their costs are communication (-0.7 percent) and furnishings, household equipment, and routine household maintenance (-1.6 percent) but they have relatively smaller weights in the consumer basket (4.5 for communication and 3.8 for the other category.)