Egypt’s urban inflation eases to 14.5% on lower food prices

Egypt’s urban inflation eased to 14.5 percent in August from 14.9 percent in July, as slower food price growth helped offset continued pressure from transport and housing costs.

The latest reading, released by Egypt’s Central Agency for Public Mobilisation and Statistics (CAPMAS), came below market expectations of 15.5 percent and marked a modest slowdown after inflation reached a three month high in July.

On a monthly basis, urban consumer prices rose 0.1 percent in August after remaining unchanged in July.

Food and beverages, the largest component of Egypt’s inflation basket, provided the main relief. Annual food inflation slowed to 6.3 percent in August from 8 percent in July, when it reached its highest level in 14 months.

Transport inflation also edged down to 24.4 percent from 24.5 percent as the impact of higher fuel prices continued to fade. Egypt raised fuel prices by about 14 percent to 17 percent in March across a range of petroleum products, the first increase of the year.

Price growth also eased in furnishings, which slowed to 16.9 percent from 17.9 percent, while inflation for alcoholic beverages and narcotics fell to 9.1 percent from 9.3 percent.

Egypt’s annual headline inflation, which covers both urban and rural areas, also slowed to 12.7 percent in August from 13 percent in July, according to CAPMAS.

Food and beverage prices rose 6.5 percent year on year, while alcoholic beverages and tobacco increased 7.7 percent. Clothing and footwear prices climbed 12.6 percent.

Housing, water, electricity, gas and fuel recorded one of the strongest increases at 33 percent. Furniture, household equipment and maintenance services rose 14.8 percent, while healthcare costs increased 5.2 percent. Transportation costs increased 21.7 percent.

The August figures come as Egypt continues to manage elevated living costs and the effects of earlier price and fuel adjustments.

Annual headline inflation stood at 11.2 percent in August 2025, meaning price growth remains higher than a year ago despite the latest moderation.

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