National Statistics Office Reports 3.1% Annual Inflation Rate
Algeria's annual inflation rate reached 3.1% by the end of July, as reported by the National Statistics Office (ONS). This figure indicates the evolution of the consumer price index from August 2025 to July 2026 compared to the prior twelve-month period. Notably, the monthly consumer price index showed a decline of 0.8% in July compared to June, primarily driven by a 1.7% decrease in food prices. Fresh agricultural products experienced a nearly 2.9% reduction, including significant drops in fruit and chicken meat prices.
These developments align with comprehensive reforms deployed under the direct guidance of President Abdelmadjid Tebboune, focused on containing inflation and safeguarding the purchasing power of citizens. The 2026 finance law had projected an inflation rate of 2.9%, underscoring a proactive approach to economic stability. In support of these efforts, the Bank of Algeria has adjusted its monetary policy, reducing its key interest rate from 3% to 2.75% in August 2025, and further to 2.5% in January 2026, marking the first such reductions in several years.
Further measures by the Bank of Algeria in 2025 included a substantial reduction in the mandatory reserve ratio for banks, lowering it from 3% to 2%. This action was designed to inject more liquidity into the banking system, directing funds towards productive investment and thereby discouraging speculative financing that can fuel price increases. Additionally, consumer credit has been strictly regulated, with its maximum rate capped at 10.36%, a reduction of 0.21 percentage points. The central bank also continues to utilize exchange rate mechanisms to counter imported inflation, ensuring broader economic resilience.
