FX.co ★ Egypt Inflation Rate Below Forecasts

Egypt’s annual urban inflation eased to 14.5% in August 2026, down from July’s three-month high of 14.9% and below market expectations of 15.5%. The slowdown was driven primarily by a moderation in food and beverages inflation—the largest component of the consumer basket—which fell to 6.3% from 8.0% in July, its highest level in 14 months. Transport inflation also edged down, to 24.4% in August from 24.5% in July, as the impact of earlier fuel price hikes continued to diminish.

In early March, Egypt raised fuel prices by about 14% to 17% across a broad range of petroleum products, the first such increase of the year, in response to elevated global oil prices. In contrast to the easing in food and transport, inflation accelerated in several categories: housing and utilities (to 42.8% from 41.2%), clothing and footwear (to 14.0% from 13.7%), and health (to 4.6% from 4.5%). On a monthly basis, the consumer price index inched up 0.1% in August, following a flat reading in July.