Egypt’s headline inflation fell to 14.5% y/y in Aug 2026.

Lower is better. Lower is better because slower price rises protect what wages and savings can buy and make it easier for firms and lenders to plan. The latest figure is 14.5% y/y for Aug 2026, up 2.5 percentage points from 12% y/y a year earlier. Since Sep 2024 the series has ranged from a low of 11.7% y/y in Sep 2025 to a high of 26.5% y/y in Oct 2024. The latest reading therefore sits in the lower part of that range, though it has moved away from the low point reached a year ago.

Why it matters. At 14.5% y/y, prices in Egypt are rising faster than they were in Aug 2025, so household wages and the interest paid on savings need to keep pace to hold their purchasing power. Firms face faster rises in input costs and have to decide how much to pass on in their own prices. The state faces the same pressure on the cost of what it buys and subsidises, and on how it sets interest rates.