Egypt's Urban Inflation Holds at 12.3% in December, Below Market Expectations

Cairo | EcoPulse24 – Egypt’s annual urban inflation rate registered 12.3% in December 2025, maintaining its level for the second consecutive month and coming in below market expectations of 12.5%. This suggests a gradual fading of the effects from the fuel price hike implemented last October.

Food Inflation Accelerates Amid Slower Growth in Key Sectors

The latest reading came despite a notable acceleration in food price inflation, a key component of the inflation basket, which rose to 1.5% compared to 0.7% in October, its fastest pace since April 2021.

Slower inflation in several major sectors helped contain overall price pressures. Transport inflation fell to 28.4% from 28.9% in November, while communications saw a sharp drop to 0.4% from 11.7%. Inflation in restaurants and hotels decreased to 12.8% from 13.4%.

Miscellaneous goods and services inflation held steady at 11.3%, and clothing at 14.9%. Furniture and home furnishings inflation edged up slightly to 12.6% from 12.4%.

Housing Inflation Continues Upward Trend on Higher Rents

Housing inflation continued its upward trajectory, reaching 29.2% compared to 27.9% in November, driven by the lingering effects of previous rent increases.

On a monthly basis, the consumer price index rose by 0.2% in December, compared to 0.3% in November, marking the slowest monthly increase in five months.

Analytical Overview

The data reflect a delicate balance between the waning impact of past price shocks and varied sectoral pressures. The stability of the overall rate below market expectations points to a relative cooling in price momentum. However, clear disparities across sectors - especially the continued rise in housing and acceleration in food prices - suggest that inflation remains vulnerable to specific cost pressures.

The general trend points toward gradual stabilization, though risks persist in certain categories, particularly housing, which continues to weigh on urban households.