Ahmed Kamel – Egypt Daily News
Egypt’s annual core inflation rate fell to 10.7% in August 2025, down from 11.6% recorded in July, according to new data released by the Central Bank of Egypt (CBE).
The central bank’s figures also show that the monthly change in its core consumer price index (CPI) which excludes volatile items such as food and energy, stood at just 0.1% in August. This marks a notable slowdown compared to the 0.9% rise in August 2024 and a deflationary reading of -0.3% in July 2025.
Meanwhile, data from the Central Agency for Public Mobilization and Statistics (CAPMAS) showed a monthly increase of 0.4% in the headline urban CPI for August 2025. This is also significantly lower than the 2.1% monthly increase reported in August 2024 and follows a -0.5% decrease recorded in July 2025.
On a year-on-year basis, Egypt’s urban headline inflation rate stood at 12.0% in August 2025, compared to 13.9% in July, reflecting a gradual easing in overall price pressures across the country.
The latest figures suggest that inflation in Egypt is on a downward trajectory after peaking in previous months, driven by the global rise in commodity prices, local currency fluctuations, and supply chain disruptions. The moderation in both core and headline inflation may provide some relief to policymakers and households alike, as the country continues efforts to stabilize its economy amid ongoing fiscal and monetary reforms.
The Central Bank has previously emphasized its commitment to price stability as a primary objective of monetary policy. Analysts will now be closely watching upcoming decisions from the CBE’s Monetary Policy Committee to see whether this sustained decline in inflation will influence interest rate policy in the final quarter of the year.
