Nominal earnings in Egypt did not respond to the increase in inflation between February 2008 and February 2009, resulting in a 12.3 (9) percent decline in average (median) real earnings among 25 to 60 years old workers. Changes in earnings differ significantly by groups: (i) those with higher initial earnings (reported and predicted) suffered the largest declines in earnings; (ii) men lost more than women but after controlling for initial earnings, women lost considerably more than men; (iii) those who were initially in agriculture also had greater declines despite rising food prices.