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Egypt’s Inflation Drops to 12.7% in Aug Amid Price Pressures

Finance Desk Read 3 minutes
Archive photo showing the location, not the event.

Cairo – Business News Report || Egypt’s annual inflation rate declined to 12.7 percent during August 2026, down from 13 percent recorded in July, according to the latest data released by the Central Agency for Public Mobilization and Statistics.

The slight moderation in the headline figure masks continued price pressures across several key sectors of goods and services. Despite the overall cooling trend, essential categories such as housing, education, and transportation remained among the most significant drivers of inflationary momentum during the month.

Housing, water, electricity, gas, and fuel emerged as the primary contributors to rising costs, recording a substantial annual increase of 33 percent. This surge was largely propelled by a 28 percent jump in actual rent prices and a 22.4 percent rise in electricity, gas, and other fuel costs.

Home maintenance expenses also climbed significantly, with repair and maintenance costs increasing by 12.1 percent. Furniture, household equipment, and supplies saw an average price hike of 14.8 percent, driven by higher costs for home furnishings, appliances, and garden tools.

Transportation and communication costs followed closely, with the transport sector registering a 21.7 percent annual increase. Purchasing new vehicles rose by 11.7 percent, while transport services jumped by nearly 25 percent. Communication services, including postal and telephone services, increased by approximately 10.5 percent.

Education costs surged dramatically, particularly at the post-secondary level, which saw an extraordinary 364.5 percent increase. Primary and secondary education costs also rose by 22 percent and 15.3 percent respectively, contributing to the sector’s overall 20 percent annual growth.

Food and beverage prices experienced mixed trends, with an overall annual rise of 6.5 percent. Vegetable prices skyrocketed by 27.7 percent, while fruit and coffee or tea prices increased by 8.1 percent and 9.8 percent respectively. Conversely, dairy products and eggs saw a slight decline of 0.5 percent.

Clothing and footwear prices rose by 12.6 percent annually, supported by increases in fabrics, ready-made garments, and cleaning services. Health care costs increased by 5.2 percent, driven by higher fees for outpatient and hospital services, although medical equipment prices fell slightly.

Recreation and culture costs grew by 15.3 percent, fueled by higher prices for newspapers, books, and organized travel. Restaurants and hotels also saw price hikes of 13.4 percent, reflecting increased costs for meals and accommodation services.

This story was produced in the newsroom from the disclosed sources named above.