Egypt: Inflation drops, but some sectors see price hikes

Inflation across Egypt fell from 14.9% in June to 13.9% in July, according to Africanews.com, the African subsidiary of Euronews. This was reported on the 12th August. This signals a modest improvement in the country’s economic conditions, with the monthly inflation rate also seeing a more pronounced decline, dropping to -0.6% compared to 0.1% in the previous month. This signals a broader reduction in prices for the Egyptian public, and follows a trend of decreasing inflation

The government-controlled Central Agency for Public Mobilisation and Statistics (CAPMAS) reported that the national Consumer Price Index reached 256.5 points in July, marking a 0.6% decrease from June. The agency attributed this decline primarily to falling food prices, with significant drops in meat and poultry (-4.9%), fruits (-11%) and vegetables (-7%), reflecting broader trends across North Africa.

While food prices largely contributed to the easing of inflations, several categories experienced broad increases, with cereals and bread prices rising by o.4%. Other goods, like dairy products, and fish and seafood, also went up by 0.2%.

Non-alcoholic beverages, including mineral water and natural juices, rose by 0.8%, with dramatic surges being noted in alcoholic beverages (+5.3%) and tobacco (+7.8%). Beyond food, other sectors also recorded price hikes, with fabric prices, ready-made garments and footwear also experience minor spikes of 0.2-0.4%. Household goods saw notable increases, with furnishings rising by 2.6%, appliances by 0.6% and tableware and utensils increasing by 1.2%. This reflects the implementation of government-imposed price hikes across Egypt.

The Central Bank of Egypt (CBE) expects inflation to stabilise near present-day figures for the remained of 2025 before gradually declining through 2026, with the bank setting a target of 7% inflation by the end of 2026. Core inflation, which does not include volatile items like food and energy, recorded a -0.3% monthly rate in July 2025, compared to -0.5 in July 2024.

Since 2017, the CBE has adopted a flexible inflation-targeting framework to stabilise price expectations and mitigate supply shocks. It has set inflation targets of 7% for Q4 2026 and 5% for Q4 2028.

As Egypt navigates economic challenges, including a depreciating currency and mounting debt repayments, the latest data offers cautious optimism for the CBE.

Africanews.com, Maghrebi.org