In the “Wekala” area of downtown Cairo, Mervat Saad El-Din spent about four hours searching for second-hand clothes for her three children in preparation for Eid, given the rising prices of new clothes and the inability of her and her husband, despite working about ten hours a day, to cover their cost.
Mervat Saad El-Din (37), a secretary at a law firm, says she did not expect to have to buy second-hand clothes for her children, even though she and her husband, who works as a teacher paid by the lesson, work long hours. She adds that price rises in recent years are no longer limited to clothes, but have extended to food, which has made meeting basic needs more difficult, especially during seasons and feasts when expenses increase.
Abdel Rahman (42), the head of a family of five, points to the difficulty of covering the expenses of the month of Ramadan and Eid amid the recent price increases, noting that some traders have raised the prices of products whose cost was not affected, and calling for the markets to be controlled.
The accounts of Mervat and Abdel Rahman intersect with official reports and statistical estimates confirming a noticeable decline in Egyptians’ purchasing power in the recent period, especially with rising inflation rates and exchange rate fluctuations. Last February, the annual inflation rate registered 13.4%, up from 11.9% in January, with a clear acceleration in food prices of 4.6% and in housing of 31.7%.
The increase was driven by three main factors, foremost among them the sharp rise in the costs of housing, water, electricity, gas and fuel, which jumped by about 24.5% year on year, as a result of higher rents and increases in the electricity tariff and gas prices. The second factor is the large increase in transport costs, which rose by 20.3%, amid rising prices of transport services and the costs of buying vehicles.
The third factor is linked to rising food prices, as vegetable prices rose by about 19.9%, along with notable increases in the prices of fish and beverages, while the usual rise in demand for food during the month of Ramadan contributes to pushing prices even higher, according to “Bloomberg”.
Double Burdens at the Feasts
The month of Ramadan and Eid al-Fitr come this year amid a new wave of price rises, especially in food commodities. The prices of nuts and dried fruit, “yamish”, have risen by between 20% and 35% compared with last year, as a result of reliance on imports and higher transport costs, which has pushed families to reduce quantities or give up some items.
The prices of Eid sweets have also risen, with a kilo of kahk ranging between EGP 290 and EGP 530 depending on the type, while a kilo of “petit fours” reaches about EGP 370. The increases have extended to basic goods such as meat, poultry and vegetables, amid an annual inflation rate of about 13.4% in the cities.
In the clothing sector, inflation rose to about 18.1%, with ready-made garment prices increasing by 18.9% as a result of higher production costs. Market estimates indicate that the prices of children’s clothes recorded notable increases before Eid, as the price of a pair of shoes may reach about EGP 2,000, which is pushing some families to cut back on purchases or turn to popular markets and second-hand clothes.
MP Freddy El-Bayadi believes that the continuous rise in prices is no longer merely a passing economic phenomenon, but has turned into a daily burden weighing on citizens and directly pressuring their standard of living, stressing that Egyptians’ purchasing power has clearly declined, amid relatively fixed incomes that have not kept pace with the successive increases in the prices of goods and services, and pointing out that citizens now go to the market with the same amount they carried a year or two ago, only to discover that they are no longer able to buy the same quantities or meet the same basic needs.
El-Bayadi tells Zawia3: “The weight of this crisis doubles during feasts and occasions, which are supposed to be seasons of joy and social connection, but reality indicates that many families now receive these occasions with a great deal of anxiety and careful calculation, and are forced to cut their expenses or give up needs that were previously considered among the basics of life. This is not due to extravagance or misjudgement on the part of citizens, but to the successive waves of high prices that have drained their incomes and weakened their ability to adapt to the rising cost of living.”
El-Bayadi believes that “the crisis does not lie only in the global rise in prices, as the government often repeats”, and adds: “The logical question that arises is: why does the Egyptian citizen feel the severity of these increases more than others? And why is any increase in global prices passed on quickly and with its full effect to the local market, while citizens do not feel any improvement with the same speed when prices fall globally? This paradox opens a wide door for questioning the mechanisms for managing the prices file, and the effectiveness of oversight of markets and distribution chains.”
The member of the House of Representatives notes that economic policies based on making citizens bear the largest share of the cost of reform are no longer socially sustainable, considering that pressing ahead with repeatedly raising the prices of fuel and public services, without clear and effective policies to compensate citizens or protect their purchasing power, necessarily leads to a widening gap between incomes and prices, and to a tangible decline in living standards.
He says that what is required of the government today is not limited to justifying decisions or attributing economic pressures to global conditions, but requires adopting real measures to control markets, confront monopolistic practices and expand social protection networks more effectively, and he stresses the need to link wages and pensions to actual inflation rates, in addition to strengthening support for local production and reducing production and transport costs, because addressing the roots of inflation remains more important than merely dealing with its results.
In this context, he stresses that economic stability is not measured by the abstract figures contained in official reports, but by the extent of the citizen’s ability to live a dignified life, and if citizens feel day after day that their income is eroding and that prices are outpacing them with accelerating steps, this is a clear indicator of the need for a serious review of economic policies, one that places the protection of citizens’ standard of living at the heart of its priorities.
Fragile Markets
Over the past three weeks, the President and his government have repeatedly spoken about the recurring price rises, especially with the approval of a large increase in petroleum products of 17%, which is directly reflected in all goods and means of transport and also raises production costs.
El-Sisi said last week that the repercussions of the regional crisis will be reflected in price levels in local markets, stressing that the state will not allow the exceptional circumstances to be exploited to impose unjustified increases on goods or to manipulate citizens’ needs.
He added that he had directed the government to study the possibility of referring price manipulators to the military judiciary, as part of tightening oversight of the markets and deterring monopolistic practices, while stressing the need for disciplined price movements and ensuring the availability of basic goods for citizens.
Academic and economic expert Karim El-Omda explains that the government’s haste in raising fuel and energy prices adds direct pressure on inflation rates, especially as energy is one of the most important basic drivers of price rises across sectors. He explains to Zawia3 that the decision to raise fuel prices came quickly after the outbreak of the war in the region, as only a short time passed before prices were raised, which is usually reflected in the market almost immediately, as inflation rates begin to rise when the effect of the fuel increase passes through to transport and production costs.
El-Omda adds that the actual increase in the prices of goods and services often exceeds the percentage rise in fuel prices themselves, because service providers and traders pass the full burden of the cost on to the consumer, and even add a larger margin to it in anticipation of any future increases. He points out that Egyptians’ purchasing power has indeed come under great pressure in the recent period, noting that fuel prices rose several times during 2024 and 2025, which was clearly reflected in transport costs, which in some cases rose by more than 100% compared with what they were about a year ago.
El-Omda believes that the options available to the government to mitigate the impact of these increases remain limited, but they begin with tightening oversight of the markets and controlling the pricing of internal transport services, especially in collective transport such as “servis” microbuses and transport within cities. He stresses that many transport fares within cities have indeed become high compared with their real cost, which adds a growing burden to the budgets of Egyptian families, especially given their daily reliance on these means for getting around and for work.
The Spectre of Recession
Trade divisions in the electronics, clothing and household goods sectors estimate that the recent wave of price increases, especially those linked to imported goods, has far exceeded the official inflation figures, with talk of cumulative jumps ranging in the tens of percent within a few weeks, which has been reflected in a state of sharp recession, as consumers focus on food and bills and postpone any unnecessary spending.
In a related context, Egypt’s Purchasing Managers’ Index shows a decline to 48.9 in February 2026 (contraction below 50), with new orders and output falling for the first time since October 2025, and selling prices cut for the first time in nearly 60 months in January, driven by lower costs but with weak consumer demand. The index covers 450 companies in the non-oil sector (manufacturing, services, construction, retail), with precise weights: new orders 30%, output 25%, employment 20%, delivery times 15%, stocks of purchases 10%.
In a striking paradox, the “K-shaped” model reflects a divided economic reality in Egypt, as the spending of the wealthy (an upper arm rising, driven by asset gains) on luxuries continues, while the middle and lower classes (a lower arm falling) face pressure from inflation (13.4% in February), debts and the rising costs of basics such as food and housing, which limits discretionary spending.
For his part, economic expert Elhamy El-Merghany tells Zawia3 that rising prices are directly reflected in the purchasing power of wages, as the higher the inflation rate, the greater the pressure on individuals’ incomes and the smaller their ability to meet their basic needs.
He explains that the real value of a wage is not measured by the wage figure itself, but by the goods and services it can buy, and gives the example that if the wage is EGP 3,000 and the price of a gas cylinder is EGP 50, its earner can theoretically buy about 60 cylinders, but if the wage doubles to EGP 6,000 and the price of a cylinder rises to EGP 200, the wage is equivalent to only 30 cylinders. He stresses that this example shows how price increases devour any wage increases, which ultimately leads to a decline in purchasing power and a reduction in household consumption, especially during feasts and occasions when expenses increase.
On what the government should do to mitigate the economic and social repercussions, El-Merghany believes that the most important step is to increase local production and work towards achieving a greater degree of food sovereignty, in a way that reduces reliance on imports and limits pressure on prices in the local market.
He adds that confronting monopolies and market manipulation is an essential element in controlling prices and protecting consumers. He also stresses the importance of maintaining exchange rate stability, supported by local production, because the rising import bill is directly reflected in the prices of goods in the markets and increases the burdens on consumers.
The 2024 data of the Central Agency for Public Mobilisation and Statistics reveal a detailed map of wages in Egypt, with a clear disparity between the public and private sectors and between different economic activities. According to the annual bulletin of employment, wages and working hours statistics, the average monthly wage of workers in the public sector and the public business sector was about EGP 14,660, while the average wage of private sector workers registered about EGP 5,796.
The data also indicate differences in the number of working hours; the general average is 219 hours a month, against 187 hours in the public sector and 221 hours in the private sector. The minimum wage in Egypt currently stands at EGP 7,000 a month for private sector workers, after the National Wages Council decided last year to raise it from EGP 6,000.
Despite the announced wage levels in Egypt, citizens’ purchasing power is greatly affected by the continuous increases in the prices of basic goods and services. The average wage in the private and public sectors does not necessarily reflect what citizens estimate as their daily needs, as indicators show that any increase in income is often quickly eroded by waves of inflation and the rising cost of living. This effect becomes more acute during seasonal periods and occasions, when many families are forced to rearrange their spending priorities or give up some basic needs, which reflects a growing gap between real wages and the level of prices in the markets.
In this context, government sales outlets play a pivotal role in providing basic goods at prices lower than the free market, including basic foodstuffs, meat, poultry and vegetables, in addition to the ration goods allocated to holders of subsidy cards. However, these outlets face several constraints, including the limited quantities available compared with demand, supply and distribution problems, and an uneven distribution between governorates, which limits their ability to fully meet citizens’ needs.
Government outlets focus on offering a wide basket of basic goods, including sugar, oil, rice, pasta, legumes and flour, in addition to meat, poultry, fish and dairy products, with space allocated for Ramadan yamish and Eid kahk, and offering announced discounts ranging, according to official statements, between 20% and 40% below market prices on some items.
