Egypt’s inflation eases for third straight month as food prices fall

Egypt’s annual inflation rate slowed for a third consecutive month in June, offering fresh signs that price pressures are easing after months of rising living costs, helped by a sharp decline in food prices and softer transport costs.

Official data released on Thursday by Egypt’s Central Agency for Public Mobilization and Statistics, CAPMAS, showed annual consumer price inflation in urban areas fell to 14.3 percent in June, down from 14.6 percent in May. The figure was also below analysts’ expectations of 15.1 percent, according to a Reuters poll.

Read also: Egypt’s pound becomes world’s top performer as falling oil prices lift economy

The slowdown marks the lowest annual inflation rate since February and suggests that the effects of higher fuel prices introduced earlier this year are beginning to fade.

Across the country, annual inflation also eased, falling to 12.2 percent in June from 13.0 percent in May.

On a monthly basis, consumer prices declined, with the national consumer price index falling 0.9 percent from May. It was the first monthly drop since July 2025, reversing the previous month’s increase and reflecting lower prices for several essential food items.

Read also: Egypt’s record-low unemployment masks fastest job cuts since 2020

CAPMAS attributed the decline largely to falling food prices. Meat and poultry prices dropped 6.4 percent during the month, dairy, cheese and eggs fell 2.4 percent, while vegetable prices recorded the biggest decline, dropping 12.1 percent compared with May.

The broader food and beverages category, which carries the largest weight in Egypt’s inflation basket, slowed to 5.4 percent from 7.6 percent in May, when it recorded its fastest annual increase in a year.

Some food items still became more expensive. Cereal and bread prices rose 0.6 percent, fruit prices increased 3.5 percent, oils and fats climbed 0.5 percent, while fish and seafood, sugar and confectionery, coffee, tea, cocoa, soft drinks and alcoholic beverages also recorded modest increases.

Transport inflation also eased to 24.4 percent from 24.7 percent, as the impact of fuel price increases continued to weaken.
Egypt raised fuel prices by between 14 percent and 17 percent in early March across a range of petroleum products, the first increase of the year, following higher global oil prices.

Read also: AFRICA FINANCE IN BRIEF: Markets reshape as banks expand, Egypt’s pound rallies

Inflation also slowed for clothing and footwear, easing to 13.6 percent from 14.2 percent, while health inflation edged down to 4.0 percent from 4.1 percent.

Housing and utility costs, however, continued to rise, with inflation in that category accelerating to 41.2 percent from 40.4 percent, driven largely by higher electricity prices.

Economists said the inflation outlook has improved in recent weeks.

Goldman Sachs said “upside risks to inflation had weakened materially” as energy prices moderated following the United States and Iran memorandum of understanding.

Meanwhile, Capital Economics pointed to Egypt’s latest staff level agreement with the International Monetary Fund, noting that the IMF had highlighted “strong policy responses” following the Iran conflict.

Inflation had climbed to 15.2 percent in March, its highest level since May 2025, before slowing to 14.6 percent in May and easing further in June, reinforcing expectations that price pressures in Egypt may continue to moderate in the coming months.