Egypt Inflation Rate Above Forecasts

Egypt's annual urban inflation accelerated for the first time in four months to 14.9% in July 2026 from 14.3% in June, but remained below market expectations of 15.1%. It was the highest inflation rate since April, with the largest component of the inflation basket, food and beverages, rising to 8.0% from 5.4% in June, the highest level in 14 months. Transport inflation accelerated slightly to 24.5% in July from 24.4% in June, as the impact of higher fuel prices continued to put pressure on prices, though it was starting to fade. Egypt raised fuel prices in early March by about 14% to 17% across a wide range of petroleum products, marking the first increase this year amid elevated global oil prices. Inflation also accelerated for clothing and footwear (13.7% vs 13.6%) and health (4.5% vs 4.0%). However, housing and utility prices remained steady at 41.2%. Monthly, the CPI was unchanged after falling 0.4% in the previous month, which marked the first monthly decline since July 2025.

Egypt's annual urban inflation eased for the third consecutive month to 14.3% in June 2026 from 14.6% in May, below market expectations of 15.1%. It was the lowest inflation rate since February, as the impact of higher fuel prices continued to fade, with transport inflation slowing to 24.4% in June from 24.7% in May. Egypt raised fuel prices in early March by about 14% to 17% across a wide range of petroleum products, marking the first increase this year amid elevated global oil prices. The largest component of the inflation basket, food and beverages, also moderated to 5.4% from 7.6% in May, when it recorded the fastest increase in a year. Inflation also eased for clothing and footwear (13.6% vs 14.2%) and health (4.0% vs 4.1%). However, housing and utility prices accelerated further (41.2% vs 40.4%), driven by higher electricity costs. On a monthly basis, the CPI fell 0.4%, reversing a 1.6% increase in the previous month and marking the first monthly decline since July 2025.

Egypt’s annual urban inflation slowed to 14.6% in May 2026 from 14.9% in April, slightly above market expectations of 14.5%. It was the lowest inflation rate since February, as the impact of higher fuel prices continued to fade, with transport inflation easing to 24.7% in May from 29.2% in April. Egypt raised fuel prices in early March by about 14% to 17% across a wide range of petroleum products, marking the first increase this year, amid elevated global oil prices. Inflation also moderated for health (4.1% vs 9.3%), restaurants & hotels (11.7% vs 12.0%), and recreation and culture (8.3% vs 16.2%) categories. However, housing and utility prices accelerated further (40.4% vs. 38.5%), driven by higher electricity costs. The largest component of the inflation basket, food and beverages, increased by 7.6%, the most in a year, after a 6.7% rise in April. On a monthly basis, the CPI rose 1.6%, accelerating from a 1.1% increase in the previous month.