Egypt inflation breaks 3-month cooling streak, rises to 14.9%

Egypt's annual urban inflation rate surged to 14.9% in July 2026, breaking a three-month cooling trend, according to the country's state statistics agency, CAPMAS. This marks the first acceleration in the inflation rate since March 2026, disrupting the recent easing pattern. The July figure represents a year-on-year increase of 14.9%, up from 14.3% in June.

The surge in inflation was driven by rising food prices and other pressures. Inflation had eased from April to June following a sharp rise in March, but the recent acceleration is attributed to fuel costs, currency movements, and the ongoing US-Iran conflict. The central bank had paused a gradual monetary-easing cycle when the conflict began, maintaining a tight stance to absorb ongoing supply and currency pass-through pressures.

Policymakers are now faced with balancing the moderation in inflation against renewed price pressures, as the next rate decision is due on August 20.