Egypt’s annual urban inflation rate accelerated to 14.9% in July, up from 14.3% in June, according to the Central Agency for Public Mobilisation and Statistics (CAPMAS).
In a statement issued on Monday, CAPMAS said annual headline inflation for the country as a whole reached 13% in July, compared with 12.2% in June. The general consumer price index (CPI) for Egypt stood at 289.9 points in July, marking a monthly increase of 0.1%.
Meanwhile, monthly core CPI inflation, calculated by the Central Bank of Egypt (CBE), recorded 0.0% in July 2026, compared with negative 0.3% in July 2025 and 0.3% in June 2026. On an annual basis, core CPI inflation rose to 14.7% in July 2026 from 14.3% in June.
The rise in annual inflation was driven primarily by higher housing, transport and education costs. Prices in the housing, water, electricity, gas and fuel category increased by 31.1% year on year, with actual rents rising 28.1% and imputed rents surging 50.9%.
Transport and communications prices climbed 21.1% year on year, driven by a 23.9% increase in transport services, an 18.8% rise in private transport expenditure and an 11.5% increase in vehicle prices.
The education category recorded an annual increase of 20%, while prices of furniture, household equipment and maintenance rose 15.2%. Restaurant and hotel prices increased 13.3%, while clothing and footwear prices were up 13%.
Food and beverage prices rose 7.9% year on year, with meat and poultry prices increasing 4%, fish and seafood prices rising 4.4%, and cereals and bread prices up 2.9%. In contrast, prices of dairy products, cheese and eggs declined by 1%.
The latest inflation reading broadly aligns with the Central Bank of Egypt’s expectations. Following its Monetary Policy Committee (MPC) meeting on 9 July, the CBE projected that headline inflation would accelerate during the third quarter of 2026, albeit at a slower pace than anticipated in May, supported by favourable developments in the foreign exchange market and a broad-based easing of inflationary pressures.
The MPC said these developments were expected to mitigate the adverse base effect during the third quarter. After leaving key interest rates unchanged for the third consecutive meeting on 9 July, the committee reiterated that inflation was expected to resume a gradual downward trajectory towards single-digit levels, approaching its target of 7% (±2 percentage points) in the second half of 2027.
The committee added that the projected inflation path would be supported by maintaining a sufficiently restrictive monetary policy stance to anchor medium-term inflation expectations.
However, it cautioned that the inflation outlook remained subject to upside risks, particularly any escalation in regional conflict, which could reverse recent improvements in risk indicators and heighten uncertainty.
The MPC also said its decision to leave the CBE’s key interest rates unchanged was intended to preserve an appropriate positive real interest-rate margin, on average, over the forecast horizon, supported by macroeconomic developments that had been more favourable than anticipated at its previous meeting.
The committee stressed that it would continue to assess monetary conditions in light of incoming economic data, the factors driving inflationary pressures and the projected inflation path amid prevailing risks.
It added that it would not hesitate to take the necessary measures to tighten monetary policy further, if required, to preserve price stability and ensure inflation returns to its target over the medium term.
