Egypt’s annual urban inflation rate rose to 13.9% in April 2025, compared to 13.6% in March, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). However, monthly inflation showed signs of slowing, registering a 1.3% increase in April versus 1.6% the previous month.
In a statement issued Saturday, CAPMAS said that nationwide annual inflation reached 13.5% in April, up from 13.1% in March. The consumer price index (CPI) for all of Egypt increased to 253.8 points in April, reflecting a 1.3% rise compared to March 2025.
The agency attributed the inflationary uptick primarily to price increases across several key expenditure categories. Prices of cereals and bread rose by 0.5%, fish and seafood by 1.7%, vegetables by 1.2%, sugar and sugary products by 0.4%, coffee, tea, and cocoa by 0.4%, and textiles by 0.4%.
Apparel and housing-related goods also saw notable increases: ready-made garments rose by 2.0%, footwear by 0.5%, actual housing rent by 1.1%, and water and miscellaneous housing services by 0.3%. Electricity, gas, and other fuels climbed by 6.7%, household furnishings by 0.9%, and household appliances by 1.2%. Glassware, tableware, and household tools increased by 0.4%, tools and equipment for home and garden by 1.1%, and goods and services for home maintenance by 1.2%.
The health sector also saw sharp increases. Prices for medical products, devices, and equipment surged by 11.4%, while outpatient services rose by 2.1%. In transportation, vehicle purchases increased by 1.3%, private transportation spending by 8.6%, and transport services by 8.2%. Postal services also recorded a significant rise of 5.7%.
Entertainment and hospitality expenses showed notable inflation as well. Prices for audiovisual and photographic equipment and IT-related items rose by 0.7%, cultural and recreational services surged by 15.6%, ready-made meals by 4.2%, and hotel services by 1.5%. Personal care products saw a 2.4% increase, while personal effects rose by 4.3%.
Conversely, CAPMAS reported price declines in a few key categories. Meat and poultry dropped by 3.5%, dairy products, cheese, and eggs by 0.6%, oils and fats by 0.1%, and fruits by 5.1%. Prices remained unchanged for alcoholic beverages, tobacco, telephone and fax services, and organized tourism trips.
The inflation data came shortly after the Central Bank of Egypt (CBE) announced a significant policy rate cut on 17 April. The overnight deposit and lending rates, along with the main operation rate, were each reduced by 225 basis points to reach 25.00%, 26.00%, and 25.50%, respectively. The credit and discount rate was also cut by 225 basis points to 25.50%.
The CBE stated that this rate reduction aligns with a monetary policy stance aimed at anchoring inflation expectations and supporting the projected downward trajectory of inflation. According to the CBE, the Monetary Policy Committee (MPC) observed a notable decline in annual inflation during the first quarter of 2025, driven by a favorable base effect, the accumulated impact of previous tight monetary policy, and the dissipation of earlier shocks.
Headline and core inflation rates fell to 13.6% and 9.4%, respectively, in March 2025, with core inflation reaching its lowest level in nearly three years. The MPC highlighted that the sharp nine-point decline in annual headline inflation during Q1 2025 was in line with projections and effectively tightened monetary conditions, thereby paving the way for initiating an easing cycle.
Looking ahead, the MPC anticipates that inflation will continue to decline throughout the remainder of 2025 and into 2026, although at a slower pace than observed in Q1. This expected deceleration reflects the impact of fiscal consolidation measures being implemented in 2025 and a more gradual decline in non-food inflation components.
However, the committee cautioned that inflation risks remain skewed to the upside. Potential risk factors include the possibility of fiscal reforms exceeding expectations and continued uncertainty stemming from the US-China trade tensions and escalating geopolitical developments in the region.
Given the current monetary environment, the committee judged the 225-basis-point rate cut to be suitable for sustaining a monetary policy stance that anchors expectations and keeps inflation on a declining path.
The MPC reaffirmed its commitment to assessing the duration and intensity of the monetary tightening cycle on a meeting-by-meeting basis. It underscored that future policy decisions will be data-dependent and shaped by evolving risks. The committee pledged to closely monitor domestic and global economic and financial developments and their impact on key macroeconomic indicators, while remaining prepared to use all available policy tools to maintain price stability and steer inflation toward the CBE’s target of 7% (±2%) by the fourth quarter of 2026.
