Ahmed Kamel – Egypt Daily News
Egypt’s annual inflation rate fell sharply to 10.3% in December 2025, marking a significant slowdown from 23.4% recorded in the same month a year earlier, according to data released by the Central Agency for Public Mobilization and Statistics (CAPMAS). The decline reflects a marked easing in price pressures after a prolonged period of high inflation driven by currency depreciation, supply constraints, and rising global costs.
The latest figures suggest that inflationary momentum has moderated across much of the economy, even as price increases remain uneven among different consumer sectors. Food and beverages, the largest component of household spending, rose by 0.9% during the month. The increase was led by higher prices for grains and bread, which climbed 4.1%, along with fish and seafood at 4.3%, oils and fats at 2.8%, and a sharp 22.6% rise in fruit prices. Prices also increased for sugar and confectionery, coffee, tea and cocoa, as well as bottled water, soft drinks and natural juices.
These increases were partially offset by declining prices for several essential food items. Meat and poultry prices fell by 4.1%, vegetables dropped by 4.8%, and dairy products, cheese and eggs edged down slightly, helping to contain overall food inflation and ease pressure on household budgets.
Outside food, price increases remained pronounced in several categories. Alcoholic beverages and tobacco recorded an 18.2% rise, reflecting higher excise taxes and pricing adjustments, while clothing and footwear rose by 14.0%, driven by higher costs for fabrics, ready-made garments and shoes.
Housing-related expenses continued to be a major source of inflationary pressure. The housing, water, electricity, gas and fuel category increased by 22.5% year on year, led by higher actual rents, rising utility costs, and increased prices for electricity, gas and other fuels. Furniture, household equipment and maintenance costs also rose by nearly 10%, reflecting higher prices for furnishings, appliances and home maintenance services.
Healthcare recorded one of the steepest increases, climbing 23.9% amid higher prices for medical products and equipment, outpatient services and hospital care. Transport and communications also remained under pressure. Transport costs rose by 21.1%, driven by higher expenses related to private transport, vehicle purchases and public transport services. Communications prices were broadly stable, rising just 0.5%, despite notable increases in postal services and telecommunications equipment.
Other sectors posted mixed results. Culture and recreation prices increased by 13.3%, education rose by 10.0%, and restaurant and hotel prices climbed by 13.0%, reflecting higher costs for prepared meals and hotel services. Miscellaneous goods and services, including personal care and personal items, increased by 12.2%.
Economists say the sharp decline in annual inflation reflects a combination of base effects, tighter monetary policy, relative stability in the foreign exchange market, and improved availability of goods compared with the previous year. However, they caution that price levels remain elevated, particularly for services and regulated sectors, and that households continue to feel the strain of cumulative increases over recent years.
The data comes as Egypt seeks to stabilize its economy, attract investment, and support growth while managing the social impact of higher living costs. While the slowdown in inflation is a positive signal, analysts note that sustaining the trend will depend on continued fiscal discipline, exchange rate stability, and global commodity price developments in the months ahead.
