Egypt's food inflation is cooling. Nigeria's is going the other way.

Egypt's inflation came in softer than expected in August, with food doing most of the heavy lifting.

Urban consumer prices rose 14.5% year on year, down from a three-month high of 14.9% in July, according to the Central Agency for Public Mobilisation and Statistics (CAPMAS). The market had braced for 15.5%. National headline inflation, which adds in rural areas, eased to 12.7% from 13%.

The key driver was food. Annual food inflation in Egyptian cities slowed to 6.3% from 8%, pulling back from a 14-month high set in July.

Why it matters: Egypt and Nigeria are running similar headline inflation rates, but Egypt's food prices are cooling while Nigeria's are accelerating. That gap shapes household budgets, consumer company earnings and how much room each central bank has to cut rates.

Egypt in numbers — August 2026

Urban inflation (y/y)

August - 14.5%

July - 14.9%

Urban inflation (m/m)

August - 0.1%

July - 0.0%

National headline inflation (y/y)

August - 12.7%

July - 13.0%

Urban food inflation (y/y)

August - 6.3%

July - 8.0%

Urban transport inflation (y/y)

August - 24.4%

July - 24.5%

National housing & utilities (y/y)

August - 33.0%

July - —

Where the pressure still sits

Food relief has not reached the rest of the basket. Nationally, housing, water, electricity, gas and fuel costs rose 33% on the year, the steepest of any category, with transport up 21.7% and clothing and footwear up 12.6%. Transport is easing only slowly as the effect of March's 14–17% fuel price increase fades.

Nor is Egypt back where it was. Headline inflation was 11.2% in August 2025, so price growth is still faster than a year ago.

The Nigeria contrast

Rainingmoney context — not part of the CAPMAS release.

Latest headline inflation

Egypt - 12.7% (August)

Nigeria - 15.43% (July)

Latest food inflation

Egypt - 6.5% (August, national)

Nigeria - 20.31% (July)

Food trend

Egypt - Slowing

Nigeria - Rising (from 17.52% in June)

The headline rates are in the same range, but the food picture is very different. Egyptian food inflation is running at roughly a third of Nigeria's. (Derived.) For Nigerian households, food is the biggest share of spending, which makes this the number that decides whether falling headline inflation actually feels like relief. Nigeria's August data is due from the NBS later this month.

Rainingmoney's take

For Egypt, a softer reading gives the central bank room to resume rate cuts after pausing at recent meetings. The risk has shifted from the market stall to the monthly bills: until housing and utility costs cool, Egyptian households will keep feeling squeezed.

For Nigeria, Egypt is a useful reminder that headline inflation and food inflation can move in different directions. A falling headline number means little to families if food keeps climbing, and that is the figure to watch when the NBS reports.