Higher fuel prices lift Egypt inflation for first time in four months

Egypt’s urban inflation rate rose for the first time in four months in July, as higher housing, fuel and education costs put renewed pressure on households and pushed annual price growth to 14.9 percent.

The increase from 14.3 percent in June was reported by the Central Agency for Public Mobilization and Statistics (CAPMAS) on Monday, with nationwide annual inflation also accelerating to 13 percent from 12.2 percent a month earlier.

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The latest figures suggest that price pressures remain persistent despite a decline in food inflation, with some of the sharpest increases coming from essential household expenses.

Housing and utilities recorded the biggest annual increase at 31.1 percent in July. Actual rents rose 28.1 percent, while imputed rents, which reflect the estimated value of owner occupied housing, increased 50.9 percent.

Transport costs rose 21.1 percent, while education increased 20 percent. Prices of furnishings, household equipment and routine maintenance climbed 15.2 percent, followed by restaurants and hotels at 13.3 percent and clothing and footwear at 13 percent.

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Food and beverages recorded a more moderate annual increase of 7.9 percent nationwide. Cereals and bread rose 2.9 percent, while meat and poultry increased 4 percent and fish and seafood climbed 4.4 percent.

On a monthly basis, Egypt’s nationwide consumer price index edged up 0.1 percent in July to 289.9 points. Food and beverage prices fell 0.1 percent from June, while urban food and beverage prices declined 0.6 percent.

Rural annual inflation stood at 11.2 percent in July, with rural food and beverage prices rising 7.8 percent from a year earlier.

The July urban inflation figure was within the range expected by analysts polled by Reuters, who had forecast annual inflation between 14.6 percent and 16.3 percent.

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The renewed rise in inflation comes as Egypt continues to deal with elevated living costs, with housing and other non food expenses increasingly driving price growth even as food inflation shows signs of easing.

The figures underline the uneven nature of Egypt’s inflation pressures, with households facing particularly strong increases in the cost of housing, transport and education while food price growth remains comparatively contained.