Egypt’s annual nationwide inflation rate accelerated to 13% in July, driven by escalating shelter and utility expenses that piled fresh financial pressure on households.
The figures, released Monday by the Central Agency for Public Mobilization and Statistics (CAPMAS), mark the country’s first inflation increase since March. Monthly inflation crept up by 0.1%.
The reversal highlights how basic living costs, particularly housing, power, and fuel, continue to strain family budgets, even as food price growth moderates.
Costs for housing, water, electricity, gas, and fuel surged 31.1% from a year earlier, recording the largest price hike among all measured consumer categories. CAPMAS attributed the spike primarily to rising rents.
The shelter burden has hit urban residents especially hard. The Built Environment Observatory recently estimated average residential rent in Cairo at roughly 10,000 Egyptian pounds ($200) per month.
To cushion low-income families, the government announced last week that it will offer public social housing units for rent. A source later told Al Manassa that average rents for those state-subsidized units are expected to be around 2,500 pounds ($50).
In addition to housing, basic utility costs expanded in July with an average 12% increase in household electricity rates. According to press reports, the tariff hike will be applied retroactively to July 2026 bills.
Providing partial relief to family budgets, food and beverage prices posted a modest annual rise of 7.9% and dropped 0.1% month over month. CAPMAS credited the monthly dip to a 2.1% decline in meat and poultry prices.
July’s overall inflation uptick broke a cooling trend that began after March, when global energy prices surged following the outbreak of the US war on Iran, pushing up Egyptian fuel and electricity rates.
External fiscal risks remain high. Brent crude futures reached about $84 a barrel on Monday, and experts previously warned Al Manassa that Egypt could face another inflationary wave if global energy prices spike again amid renewed risks of a Strait of Hormuz closure.
