Egypt launches nationwide price reduction initiative
The initiative—set to roll out in the coming days—follows directives from Prime Minister Mostafa Madbouly to establish effective mechanisms for market regulation, ensure the availability of basic goods, and support low- and middle-income households.
Public–private cooperation intensifies
On Monday, the Ministry of Supply and Internal Trade convened a high-level meeting with the Federation of Egyptian Chambers of Commerce (FEDCOC), attended by Supply Minister Sherif Farouk, FEDCOC President Ahmed El-Wakeel, Cairo Chamber Chairman Ayman El-Ashry, and representatives from major retail chains and supply companies.
Speaking at the meeting, El-Ashry emphasized the private sector’s readiness to support the state’s efforts, noting that traders and suppliers have pledged to voluntarily reduce profit margins to help lower prices without compromising product quality or availability.
“This initiative represents a timely and strategic response to current market pressures. We are committed to engaging constructively to ensure fair pricing and consistent supply for consumers, particularly those most affected by recent economic challenges,” El-Ashry said.
Targeting core commodities
The initiative will primarily target core commodities, including food staples, cooking oil, rice, dairy products, and household goods. Participating retailers will adjust prices to better reflect actual production costs and consumer purchasing power.
According to the Ministry, the campaign will be accompanied by increased monitoring efforts and coordination with local chambers to ensure transparency and prevent manipulation or artificial shortages.
Balancing market mechanisms
Officials clarified that the initiative does not signal a return to state price controls but instead aims to reinforce free-market principles through voluntary cooperation and targeted supply chain interventions.
Minister Farouk reiterated the government’s commitment to striking a balance between market freedom and consumer protection, pledging continued regulatory and technical support to private sector stakeholders.
Toward sustainable market stability
Beyond immediate price cuts, the government is pursuing structural reforms, including expanding domestic production, strengthening local supply chains, and encouraging investment in strategic sectors such as agriculture and food processing.
Participants at the meeting agreed on the importance of maintaining open dialogue between the public and private sectors to safeguard market stability and supply chain resilience.
As global inflationary pressures persist, Egypt’s coordinated effort to reduce local prices represents a key step toward protecting household budgets and preserving social cohesion.
Egypt’s annual inflation rate eased to 14.4 percent in June, down from 16.5 percent in May, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). The monthly Consumer Price Index (CPI) edged down by 0.1 percent to 258.1 points—the first decline in several months.
Globally, the US Federal Reserve held interest rates steady at 4.5 percent amid moderated growth in the first half of 2025, elevated inflation, and the economic impacts of the Trump administration’s renewed tariff policy.