Egypt’s annual urban consumer price inflation eased to 13.9% in July, down from 14.9% in June, driven by a decline in food prices. According to Reuters, the moderation marks a steady retreat from the record 38% peak in September 2023, a shift supported by reforms under Egypt’s $8 billion IMF-backed stabilization package.
The latest data from the state statistics agency CAPMAS showed that prices of meat and poultry fell by 4.9%, fruits by 11%, and vegetables by 7%, helping to pull overall food and beverage costs 3% lower month-on-month. According to Business Today Egypt, despite these declines, food prices remain 3.4% higher than they were a year ago.
Beyond food, inflationary pressures persist in essential services. Core inflation, which excludes volatile food and fuel items, rose to 11.6% in July from 11.4% in June, underscoring continued cost increases in housing, healthcare, transport, and education. According to Daba Finance, these categories continue to weigh on household budgets even as food relief takes hold.
The Central Bank of Egypt has maintained interest rates steady in recent meetings, citing the need to balance easing inflation with macroeconomic stability. According to Business Today Egypt, policymakers expect headline inflation to stabilize through the end of 2025 before gradually declining into 2026.
Analysts note that while the easing in food prices may provide short-term relief to consumers, persistent pressures in non-food sectors could delay a broader recovery in purchasing power. According to Reuters, the inflation trajectory will remain a critical factor in guiding monetary policy and investor sentiment in the months ahead.
