Ahmed Kamel – Egypt Daily News
Egypt’s annual headline inflation rate declined slightly to 13.1% in July 2025, down from 14.4% in June, according to official data released by the Central Agency for Public Mobilization and Statistics (CAPMAS). While the figures suggest a modest slowdown in overall price acceleration, inflationary pressures continue to weigh heavily on Egyptian households, particularly in food, housing, transportation, and healthcare.
Food Inflation Remains a Key Driver
The food and beverage sector typically the most volatile component of the consumer basket, saw a monthly increase of 3.0%, driven by significant price hikes across essential categories. Prices of fruits soared by a staggering 44.8%, while fish and seafood rose 11.3%. Dairy products, cheese, and eggs were up 4.6%, and oils and fats climbed 4.0%.
Notable increases were also recorded in sugar and sugary products (up 3.3%), coffee, tea, and cocoa (6.3%), and mineral water, soft drinks, and natural juices (17.5%). The price of cereals and bread, staples in the Egyptian diet, increased by 4.3%.
These increases came despite a slight decline in meat and poultry prices (down 1.3%) and a sharp drop in vegetable prices (down 15.4%), offering some relief to consumers but not enough to offset broader food inflation.
Housing, Utilities, and Fuel Costs Surge
One of the most significant contributors to headline inflation in July was the housing, water, electricity, gas, and fuel category, which recorded a year-on-year increase of 20.4%. This was largely due to soaring energy costs, with electricity, gas, and other fuel prices rising by 43.6%. Additionally, rents rose by 12.9%, and maintenance and repair services for housing increased by 14.2%.
Health and Transport Services See Double-Digit Gains
Healthcare costs surged by 37.7% compared to the previous year. The sharpest increases were seen in medical products and equipment (up 52.4%), outpatient clinic services (14.8%), and hospital services (21.1%).
Transportation costs also saw steep increases, rising 34.8% year-on-year. This was due to higher expenses for vehicle purchases (12.0%), personal transport (36.2%), and public transport services (39.1%).
Other Notable Increases Across Sectors
- Clothing and Footwear: Prices rose by 14.6%, driven by increases in fabrics (12.2%), ready-made garments (15.2%), and shoe repair services (22.1%).
- Furniture and Household Equipment: This category increased by 11.1%, with furniture, appliances, and maintenance goods all seeing price hikes of 10–16%.
- Communications: Costs rose by 11.2%, largely due to a 42.0% jump in postal services.
- Culture and Recreation: The sector was up 20.3%, driven by higher prices for cultural services (38.5%), organized tours (29.7%), and recreational equipment.
- Education: A 10.0% annual increase was reported, particularly in pre-primary and basic education (12.5%) and higher education (12.2%).
- Restaurants and Hotels: Prices rose by 15.1%, with fast food and hotel services rising sharply.
- Miscellaneous Goods and Services: This category climbed 13.5%, driven by personal care items (15.0%) and personal accessories (27.7%).
Outlook
While the dip in headline inflation to 13.1% may signal a tentative stabilization, the underlying cost of living remains elevated for many Egyptians. The persistent increases across vital sectors especially food, housing, healthcare, and transportation highlight ongoing structural challenges.
The government and Central Bank of Egypt will likely continue to monitor price movements closely, particularly as global commodity trends, currency fluctuations, and domestic economic reforms continue to influence inflation dynamics.
