The annual urban headline inflation rate continued to slow for the second consecutive month, recording 13.9% in July 2025, compared to 14.9% in the previous June.
In its monthly report, the Central Bank of Egypt attributed this slowdown primarily to a decline in inflation in fresh fruit and vegetable prices, despite an increase in tobacco prices following recent tax amendments. Overall, inflationary pressures have eased across most goods and services comprising the consumer price index basket.
The annual core inflation rate remained relatively stable at 11.61 TP3T in July 2025, compared to 11.41 TP3T in June 2025, reflecting developments in the monthly core inflation rate, which recorded -0.31 TP3T in July 2025 compared to -0.21 TP3T in June 2025. The continued contraction in July was mainly attributed to the marked decline in food price inflation to -0.31 TP3T, as prices of basic food commodities declined to their lowest level since December 2018.
On the other hand, non-food inflation rose by 11%, due to increases in the prices of some services, especially rents, and spending on restaurants and cafes, in addition to the prices of some consumer goods such as clothing, household hygiene products, and personal care products.
The monthly urban headline inflation rate recorded minus 0.51 TP3T in July 2025, compared to minus 0.11 TP3T in June 2025 and 0.41 TP3T in July 2024. This contraction was affected by the aforementioned declines in the prices of basic commodities, vegetables, and fresh fruits.
The annual general inflation rate in rural areas continued its decline, recording 12.41 TP3T in July 2025, compared to 13.91 TP3T in June 2025. The annual general inflation rate at the republic level also declined, recording 13.11 TP3T in July 2025, compared to 14.41 TP3T in June of the same year.
Food inflation declined significantly, recording -3% in July, contributing -1.15 percentage points to the monthly headline inflation rate.
Fresh fruit and vegetable prices fell sharply to -11.5%, contrary to their usual seasonal pattern, marking their lowest inflation rate since June 2022, contributing a -0.73 percentage point to the monthly headline inflation rate.
Poultry prices fell for the second consecutive month by 9.1%, in line with their usual seasonal pattern, contributing -0.46 percentage points to the monthly headline inflation rate.
Dairy prices rose by 0.4%, contributing 0.02 percentage points to the monthly headline inflation rate.
Prices of goods and services with administratively determined prices rose by 2.11 TP3T, contributing 0.46 percentage points to the monthly headline inflation rate. This came as a result of a 7.91 TP3T increase in cigarette prices following price adjustments implemented at the beginning of the month in line with the recent tax amendments.
Services prices rose by 0.5%, contributing 0.14 percentage points to the monthly headline inflation rate, driven by higher rents and spending in restaurants and cafes.
Consumer goods prices rose by 0.35%, contributing 0.05 percentage points to the monthly headline inflation rate. This increase was primarily due to slight increases in clothing, household hygiene products, and personal care products.
The monthly core inflation rate recorded minus 0.3 in July 2025 due to the impact of the aforementioned changes in the prices of basic commodities, specifically basic food contributed by minus 0.59 percentage points to the monthly core inflation rate, while services and consumer goods contributed by 0.19 percentage points and 0.07 percentage points, respectively.
