Egypt’s annual urban inflation rate rose to 14.9% in July 2026, marking the first increase this year after months of gradual moderation, according to data released by the Central Agency for Public Mobilization and Statistics (CAPMAS). The figure was up from 14.6% in June, which had been the lowest annual inflation reading recorded in 2026. Despite the increase, monthly inflation remained unchanged at 0.0%, pointing to relatively stable price conditions during the month.
The urban Consumer Price Index (CPI) reached 290.5 points in July, compared with 290.4 points in June. While the annual rate edged higher, the flat monthly reading suggests that the increase was largely driven by developments in specific expenditure categories rather than broad-based price increases across the consumer basket.
Food prices continue to moderate
Food and non-alcoholic beverages, which account for a significant share of household spending, continued to show signs of moderation. Annual food inflation stood at 8.0% in July, well below the headline inflation rate, while prices in the category declined by 0.6% compared with June.
According to CAPMAS, the monthly decline was driven by lower prices for vegetables, fruits, seafood, and oils and fats. These declines offset increases in other food items, including meat and poultry, dairy products, cereals, and bread.
The continued moderation in food prices helped contain overall inflationary pressures and contributed to keeping the monthly inflation rate unchanged.
Housing and transportation remain the largest inflation drivers
While food inflation eased, non-food categories continued to exert upward pressure on the headline rate.
Housing, water, electricity, gas, and other fuels recorded the largest annual increase among major expenditure groups, rising 41.2% compared with July 2025. Transportation costs climbed 24.5% year-on-year, while education prices increased 18.7%. Furnishings, household equipment, and routine household maintenance costs rose 17.9% annually.
The data indicate that inflation is increasingly concentrated in services and household-related expenditures, with housing and transportation accounting for a significant share of annual price growth.
Monthly price movements remain limited
On a monthly basis, most expenditure categories recorded relatively modest changes.
Furnishings and household equipment posted the strongest monthly increase, rising 1.6%. Housing and healthcare prices each increased by 0.7%, while miscellaneous goods and services rose 0.6%. Restaurants and hotels registered a 0.4% increase.
Meanwhile, recreation and culture prices fell 2.4% during the month, helping offset increases elsewhere in the consumer basket. Combined with lower food prices, these declines contributed to keeping monthly urban inflation at zero.
First increase of the year, but monthly inflation remains flat
The July figures suggest that Egypt’s inflation dynamics continue to shift away from food-driven price pressures toward more persistent increases in housing, transportation, and other services. While the rise to 14.9% marks the first increase in annual inflation this year, the combination of flat monthly inflation and declining food prices indicates that underlying price pressures remain relatively contained. The coming months will likely provide a clearer indication of whether July represents a temporary interruption in the disinflation trend or the beginning of a more stable phase for consumer prices.
