Egypt’s annual headline inflation rate eased to 12.7% in August 2026, down from 13% in July, while consumer prices remained unchanged on a monthly basis, according to data from the Central Agency for Public Mobilization and Statistics (CAPMAS).
The headline Consumer Price Index (CPI) for the entire republic stood at 289.8 points in August, unchanged from July. The monthly stability was supported by a 1.2% decline in food and beverage prices, which offset increases in housing, utilities and other categories.
Annual inflation remains above the 11.2% recorded in August 2025 and the 10.1% recorded in January 2026, but has continued to moderate from a 13.5% peak in March.
Food prices offset other increases
Food and beverage prices fell 1.2% month-on-month in August, led by a 7% decline in vegetable prices and a 1.5% drop in meat and poultry prices.
These declines were partly offset by higher prices for dairy products, cheese and eggs, which rose 1.3%, while mineral water, soft drinks and natural juices increased 2.7%.
On an annual basis, food and beverage prices were 6.5% higher than in August 2025, below the headline inflation rate.
Housing, water, electricity, gas and other fuels, meanwhile, rose 1.9% month-on-month, driven by a 4.3% increase in electricity, gas and other fuel prices. Actual rents increased 0.8%.
The category remained a major source of annual inflation, with prices up 33.0% year-on-year.
Other consumer costs continue to rise
Clothing and footwear prices increased 0.5% month-on-month in August, while household furnishings and equipment rose 0.7%.
Transport prices increased 0.2%, driven by a 0.9% rise in vehicle purchase prices, while healthcare costs rose 0.4% during the month.
On an annual basis, transport prices were 21.7% higher than a year earlier, while healthcare costs increased 5.2%.
Education remained another significant source of annual price pressure, with costs rising 20.0% year-on-year. Pre-primary and basic education increased 22.0%, while higher education costs rose 17.0%.
CAPMAS also recorded a 364.5% annual increase in post-secondary non-tertiary education, a narrower subcategory that should not be interpreted as a comparable increase across the broader education sector.
CBE keeps rates unchanged
The latest inflation data come after the Central Bank of Egypt (CBE) kept interest rates unchanged at its August 20, 2026 meeting.
The CBE maintained the overnight deposit rate at 19%, the overnight lending rate at 20%, the main operation rate at 19% and the discount rate at 19.5%.
The decision followed a 100-basis-point rate cut in February, after which the central bank kept rates unchanged as it sought to maintain tight monetary conditions and support the disinflation process.
The CBE expects inflation to remain relatively elevated through the third quarter due to unfavorable base effects, before gradually declining from the first quarter of 2027. It expects inflation to converge toward its 7% target, with a ±2 percentage-point tolerance band, in the second half of 2027.
Inflation continues to moderate
Egypt’s annual inflation rate rose from 10.1% in January to 13.5% in March, before gradually easing to 12.7% in August.
The latest data point to a more stable inflation environment, with the annual rate declining for a fifth month from its March peak and no overall monthly increase in consumer prices.
However, persistent price pressures in housing, utilities, transport and education continue to weigh on household costs, leaving the CBE with limited room to accelerate monetary easing.
For now, the combination of stable monthly prices, lower food costs and a gradual decline in annual inflation provides a more favorable backdrop for Egypt’s disinflation process, although inflation remains well above the central bank’s medium-term target.
