Annual urban headline inflation rose sharply to 16.8% in May 2025, up from 13.9% in April, according to data released by the Central Bank of Egypt (CBE). This uptick was driven by persistent non-food inflationary pressures, a renewed increase in food inflation, and unfavourable base effects due to negative inflation rates recorded during the same month last year.
The latest inflation dynamics were shaped by a combination of structural and seasonal factors. Price increases in pharmaceutical products and fresh fruits played a key role, along with a moderate rise in inland transportation costs, reflecting the delayed impact of fuel price hikes implemented in April. The month also witnessed a significant acceleration in annual core inflation, which reached 13.1% in May compared to 10.4% the previous month. This was underpinned by higher monthly core inflation—1.6% in May, up from 1.2% in April—alongside the low base effect from May 2024, when core inflation had declined by 0.8%.
On a monthly basis, urban headline inflation registered 1.9% in May, compared to 1.3% in April and a negative 0.7% in May last year. The rise reflected widespread price increases across both food and non-food items. Notably, inflationary pressures intensified during the Eid Al-Adha season, with higher costs observed for Hajj and Umrah travel, clothing, and meat. These seasonal effects, combined with price increases in engine oil, restaurant and café services, inland transport, and housing rents, contributed to the broader inflationary trend.
Nationwide, annual headline inflation increased to 16.5% in May from 13.5% in April, while rural inflation rose to 16.2%, up from 13.1% the previous month. Within food items, prices of fresh fruits surged by 14.9%, while vegetable prices recorded a smaller increase of 0.6%. Together, they added 0.43% to monthly headline inflation. Poultry and red meat prices rose by 2.8% and 0.7%, respectively, reflecting seasonal demand, and contributed a combined 0.19%. Fish and seafood prices increased by 2.4%, contributing 0.07%, while dairy products rose by 1.3%, adding 0.06%. Egg prices, however, saw a notable decline of 13.0%—the largest recorded drop—subtracting 0.23% from monthly inflation.
Retail prices climbed by 3.8%, contributing 0.54% to monthly headline inflation. This was mainly attributed to an 83.4% surge in engine oil prices and a 6.5% increase in pharmaceutical products, alongside rising prices for clothing, personal care goods, household cleaning products, and various other retail items. Service prices rose by 1.8%, adding 0.49% to the monthly figure, largely due to seasonal Hajj travel, increased spending on restaurants and cafés, higher rents, and the lingering impact of April’s fuel adjustments on transport costs.
Regulated items saw a more modest increase of 1.1% in May, contributing 0.24% to monthly headline inflation. The main drivers here included higher prices for tobacco products, LPG cylinders, inland transport services, and various public healthcare items.
Monthly core inflation stood at 1.6% in May, reflecting the cumulative effect of increases in retail items and services, which contributed 0.74 and 0.68%s respectively. Core food items also contributed 0.22% to the monthly core figure.
