Egypt’s Inflation Paradox: Prices Barely Rise in July, but the Cost-of-Living Squeeze Intensifies
Cairo, August 11, 2026 – Egypt’s inflation took a surprising turn in July, with prices remaining nearly unchanged from month to month, yet the inflation rate increased, highlighting the persistent high costs that continue to burden household budgets across the country.
On Monday, August 10, 2026, the Central Agency for Public Mobilization and Statistics (CAPMAS) in Egypt disclosed that annual headline inflation in the country had reached 13.0 percent in the month of July, which is an increase from the figure of 12.2 percent recorded in June. The General Consumer Price Index recorded a value of 289.9 points, reflecting a slight month-on-month increase of 0.1 percent.
Housing has come to be one of the most alarming pressure points. Actual rents rose 28.1% from last year, while imputed rents, or the rent the owner would have received, rose 50.9%.
According to official economic reports from Ahram Online, the annual inflation data for the education division showed a 20.0 percent year-on-year increase, driven by a 364.5 percent surge in post-secondary and technical education costs.
The food and drink industry offered some surprise relief in July 2026: this month the total cost of the two categories went down by 0.1%. The main reason is a 2.1% drop in meat and poultry prices. The food prices went down from month to month, but the food price index rose by 7.9% when compared with July 2025.
The situation in Egyptian cities is even worse than observed at the country level. The statistical body CAPMAS reported that consumer inflation in cities accelerated to 14.9 percent in July in comparison with 14.3 percent in June, while core inflation climbed to 14.7 percent.
Egypt has made significant progress since its peak inflation levels. The figure for inflation reached a historic high of 38 percent in September 2023, followed by a favorable change after the economic reform, as the $8 billion loan from the IMF was approved in March 2024.
In July 2026, Egypt’s annual urban inflation rose to 14.9%, ending a three-month cooling trend due to unfavorable base effects. High costs for housing, fuel, and utilities continue to create severe financial pressures for everyday households.
