Egypt’s Annual Inflation Eases to 13.1% in July as Food Prices Drop

AFRICAN BUSINESS AND ECONOMYAugust 13, 2025 at 11:51 AM UTC

TLDR

Egypt’s annual headline inflation slowed to 13.1% in July from 14.4% in June, according to the Central Agency for Public Mobilization and Statistics
The deceleration was driven largely by lower food prices, including sharp monthly drops in meat and poultry
Core inflation in July was -0.3% month-on-month and 11.6% year-on-year, up slightly from 11.4% in June

Egypt’s annual headline inflation slowed to 13.1% in July from 14.4% in June, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). The deceleration was driven largely by lower food prices, including sharp monthly drops in meat and poultry (-4.9%), fruits (-11%), and vegetables (-7%).

Monthly, the national consumer price index fell 0.6% to 256.5 points. Urban inflation eased to 13.9% year-on-year, with monthly inflation also declining to -0.6% from -0.1% in June. Core inflation in July was -0.3% month-on-month and 11.6% year-on-year, up slightly from 11.4% in June.

While most food categories fell, some prices rose: grains and bread (+0.4%), fish and seafood (+0.2%), dairy products (+0.2%), oils and fats (+0.1%), and sugar, coffee, tea, and cocoa (+0.2%). Non-food categories also saw gains, including alcoholic beverages (+5.3%), tobacco (+7.8%), furnishings (+2.6%), and hotel services (+1.5%).

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Key Takeaways

The Central Bank of Egypt (CBE) expects inflation to stabilise near current levels through 2025 before falling toward its 7% (±2%) target by the end of 2026. Its latest projections are 15–16% for 2025 and 11–12% for 2026, down sharply from the 28.3% peak in 2024. The July decline offers cautious optimism, but price pressures remain in sectors such as housing, healthcare, and certain consumer goods. The CBE warns that slow adjustments in service prices and fiscal reforms could delay disinflation. With a flexible inflation-targeting framework, the CBE will continue to adjust policy rates, reserve requirements, and liquidity operations to anchor price stability, aiming for a sustained path toward lower inflation over the next two years.

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