Egypt Inflation Accelerated to 15.6 Percent in July

Egypt’s annual headline inflation rate expectedly accelerated to 15.6 per cent in July from 14.3 per cent in June, driven by unfavourable base effects and intensifying price pressures on food and non-food goods.

A Reuters poll of 13 economic analysts conducted between July 29 and August 6 yielded a median forecast of 15.6 per cent, with individual estimates ranging between 14.6 per cent and 16.3 per cent.

“Stronger food inflation and an uptick in non-food inflation too will have driven the headline rate higher in July to 16.1 per cent year-on-year,” noted James Swanston of Barclays, ahead of the official release from government statistics agency CAPMAS on Monday, August 10.

Emirates NBD Acquires HSBC Egypt Retail

Economists attribute the temporary acceleration to timing factors and ongoing economic reforms tied to Egypt’s $8 billion International Monetary Fund support package.

EFG Holding’s Mohamed Abu Basha projected a muted month-on-month reading of 0.5 per cent, explaining that unfavourable base effects will keep annual numbers elevated through August before inflation resumes a downward trend in the final quarter of 2026.

Egyptian inflation accelerated to 15.6 per cent in July (News Central TV) — Egyptian inflation accelerated to 15.6 per cent in July. Credit: Reuters

However, state subsidy cuts continue to pass directly to consumers; the Egyptian government raised domestic electricity tariffs by an average of 12 per cent across most consumption brackets earlier this month, which analysts at Emirates NBD expect will fuel additional upward pressure on the upcoming August inflation metrics.

Author

Abisoye Adeyiga

Abisoye Adedoyin Adeyiga holds a PhD in Languages and Media Studies and a Master’s in Education (English Language). Trained in digital marketing and investigative journalism, she is passionate about new media’s transformative power. She enjoys reading, traveling, and meaningful conversations.