Egypt’s urban inflation rate slowed to 13.9% in July, down from 14.9% in June, offering some relief to households after months of soaring prices. The monthly inflation rate also fell more sharply, from -0.1% to -0.6%, according to the state statistics agency CAPMAS. The Consumer Price Index (CPI) slipped to 256.5 points, driven mainly by lower food prices. Meat and poultry fell 4.9%, vegetables dropped 7%, and fruit prices plunged by 11%. Personal goods also became slightly cheaper, down 0.5%.
However, the picture wasn’t entirely rosy. Prices for cereals, dairy products, fish, and oils all ticked up slightly. Alcoholic beverages rose 5.3% and tobacco jumped 7.8%. Housing costs also climbed, with rents up 0.8% and home maintenance surging 1.7%. Healthcare, transport, and hotel services all became more expensive. On a national scale, annual inflation cooled to 13.1% from 14.4% the previous month. The Central Bank of Egypt (CBE) expects inflation to hover around current levels through 2025 before gradually falling toward its target of 7% (±2%) by the end of 2026.
Core inflation, which strips out volatile food and energy prices, dipped 0.3% on the month but edged up annually to 11.6%. In its latest report, the CBE revised its 2025 inflation forecast to 15–16%—still far below last year’s peak of 28.3%. Economists say falling food prices are a welcome sign, but persistent cost increases in housing, healthcare, and services mean many Egyptians may not feel the benefits right away. The CBE is expected to keep a close eye on inflation risks as it continues interest rate adjustments and other measures to stabilize the economy.
