Egypt’s annual urban inflation rate rose to 12.5% in October 2025, up from 11.7% in September, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).
The increase was largely driven by higher fuel prices, following the government’s decision to raise petroleum product prices by 10.5–12.9% in October.
The Central Bank of Egypt (CBE) reported that monthly core consumer price index (CPI) climbed to 2% in October 2025, compared with 1.5% in September 2025 and 1.3% in October 2024. On an annual basis, core inflation reached 12.1%, up from 11.3% the previous month.
Meanwhile, the nationwide annual inflation rate eased slightly to 10.1% in October, compared to 10.3% in September, CAPMAS said.
The CPI for the entire country reached 264.3 points in October, marking a 1.3% monthly increase. CAPMAS attributed the rise to higher costs in several key categories, particularly food, clothing, housing, and utilities.
Notable price gains were recorded in grains and bread, meat and poultry, dairy products, oils and fats, vegetables, sugar and confectionery, beverages, and tobacco. Prices of textiles, ready-made clothing, footwear, rent, and household maintenance also moved higher.
In contrast, fish and seafood prices declined by 0.3%, fruits fell by 10.6%, and audio-visual equipment, computers, and hotel services registered minor decreases.
Looking ahead, the CBE projects average annual headline inflation to ease to 14% in 2025 and 10.5% in 2026, down from 28.3% in 2024, before converging toward its medium-term target of 7% (±2%) by Q4 2026 and 5% (±2%) by Q4 2028.
At its October meeting, the Monetary Policy Committee (MPC) cut key interest rates by one percentage point, bringing the deposit rate to 21%, the lending rate to 22%, and the main operation and discount rates to 21.5%.
The committee said the move supports the decline in inflation expectations and reinforces monetary policy consistency, while warning that inflation remains subject to upside risks, including potential administrative price adjustments and geopolitical tensions in the region.
