Inflation in Egypt picked up pace in February, delivering a sharper rise than many economists anticipated and highlighting renewed pressure on household budgets.
Official figures released by Central Agency for Public Mobilization and Statistics (CAPMAS) show that annual urban consumer inflation accelerated to 13.4%, up from 11.9% in January. The data underscores a fresh upward push in prices across the country, particularly in everyday essentials.
On a monthly basis, consumer prices rose 2.8% in February, reflecting steady increases in multiple spending categories. Food and beverage costs — a key driver of household expenses — climbed 4.6% both year-on-year and month-on-month, adding further strain during the holy month of Ramadan, when demand for food typically rises.
The increase came in above expectations, as many analysts had projected inflation to reach around 12%. Seasonal demand and higher tobacco prices contributed to the stronger-than-expected reading.
Despite the recent uptick, inflation remains far below the dramatic levels seen in late 2023, when price growth peaked at 38%, one of the highest rates in the country’s recent history. That surge was later tempered in part by financial support arrangements with the International Monetary Fund, including a multi-billion-dollar package agreed in 2024 aimed at stabilizing the economy.
New pressures could emerge in the months ahead. Energy costs are already feeding into the price outlook after authorities raised fuel prices across a wide range of products. The move reflects rising import costs linked to disruptions in the Strait of Hormuz, a crucial global shipping route for oil.
Markets in the capital, Cairo, are already feeling the ripple effects as vendors and shoppers navigate the latest shift in prices — a reminder that inflation, though reduced from its earlier peak, remains a central economic challenge for the country.
