Core inflation, which excludes items with volatile prices such as food and energy, remained relatively stable. It reached 11.6% year-on-year in July, compared to 11.4% in June.
Inflation in Egypt continued to slow in July, driven by significant declines in food prices that helped offset recent increases in regulated costs such as tobacco. According to the Central Bank of Egypt (CBE), annual urban headline inflation fell to 13.9%, down from 14.9% in June, marking the second consecutive month of deceleration.
Monthly urban headline inflation recorded a drop of 0.5% in July, compared to a 0.1% decline in June and a 0.4% increase in the same month last year. This decline was primarily attributed to falling prices in food items—particularly fresh fruits, vegetables, and poultry—amid improved supply conditions.
Core inflation, which excludes items with volatile prices such as food and energy, remained relatively stable. It reached 11.6% year-on-year in July, compared to 11.4% in June.
On a monthly basis, core inflation declined by 0.3%, continuing the deflationary trend seen the previous month. This was driven by a notable 3.0% drop in core food prices, which reached their lowest level since December 2018.
Fresh fruit and vegetable prices fell by 11.5%, contributing a –0.73 percentage point impact on monthly headline inflation. Poultry prices also dropped by 9.1%, in line with seasonal patterns, pushing monthly inflation down by another –0.46 percentage point. In contrast, dairy products saw a mild increase of 0.4%.
Regulated prices rose 2.1% overall, primarily due to a sharp 7.9% rise in tobacco prices following tax adjustments implemented at the beginning of the month. This increase added 0.46 percentage point to monthly inflation. In Egyptian pounds, the average index for tobacco and related products surged from EGP 120.61 in July 2024 to EGP 351.77 in July 2025.
Service prices also climbed by 0.5%, largely due to higher costs for rent, restaurants, and cafés, contributing 0.14 percentage point to the overall inflation rate. Retail items such as clothing, personal care products, and household cleaning supplies rose by 0.35%, adding a smaller 0.05 percentage point.
Outside urban areas, rural headline inflation followed a similar trend, falling to 12.4% in July from 13.9% the previous month. On a national scale, inflation declined to 13.1%, compared to 14.4% in June.
A closer look at expenditure categories reveals the varying degrees of inflation. Food and beverages, which make up 32.73% of the consumer basket, saw a monthly price drop of 2.98%, resulting in a modest annual increase of just 3.41%. In contrast, tobacco prices skyrocketed by nearly 192% year-on-year. Medical care rose 38.4% annually, and transportation saw a 41.5% increase.
Core CPI, which represents around 73.09% of the overall index, fell by 0.33% from June to July, with food contributing –0.59 percentage point to that figure. Services and retail items added 0.19 and 0.07 percentage point, respectively.
In monetary terms, the overall consumer price index (CPI) moved from EGP 222.09 in July 2024 to EGP 252.86 in July 2025. Core CPI increased from EGP 219.99 to EGP 245.48 over the same period.
