Egypt’s Inflation Rate Drops for Second Consecutive Month

Egypt’s inflation rate has slowed for the second month in a row, with official data from the Central Agency for Public Mobilisation and Statistics (CAPMAS) showing annual headline inflation at 13.1% in July, down from 14.4% in June. The monthly inflation rate also dipped by 0.6%, reflecting a drop in prices for several essential food groups.

The nationwide consumer price index (CPI) registered 256.5 points in July, a 0.6% decrease from the previous month. CAPMAS attributed the slowdown primarily to a notable drop in the prices of meat and poultry by 1.3% and vegetables by 15.4%. On a monthly basis, meat and poultry prices fell by 4.9%, fruit by 11%, and vegetables by 7%.

Despite the overall easing, some consumer divisions saw significant annual increases. Alcoholic beverages and tobacco rose by 23.3%, clothing and footwear by 14.6%, and the housing, water, electricity, gas, and fuel division surged by 20.4%. Healthcare costs recorded one of the largest annual jumps at 37.7%, with medical products and equipment up by 52.4%. Transport prices advanced 34.8%, driven by higher costs for vehicle purchases and public transport.

The food and beverages division, which carries significant weight in the CPI basket, recorded a modest annual rise of 3%, though some categories remained volatile. Fruit prices soared by 44.8% year-on-year, while cereals and bread rose by 4.3%, and fish and seafood by 11.3%.

CAPMAS noted that the monthly CPI decline was largely due to price falls in meat, poultry, fruit, and vegetables, even as other categories such as cereals, dairy, and beverages saw slight increases. The agency highlighted that Egypt has faced persistent inflationary pressures over the past two years, driven by currency depreciation, global commodity price swings, and domestic supply chain constraints.

The Central Bank of Egypt’s Monetary Policy Committee is set to meet on August 28 to review key interest rates in light of these developments. Since the start of 2025, the bank has introduced 3.25% in rate cuts to help manage inflation and support economic stability.