Egypt Annual Urban Inflation Falls To 12 Percent In August

Egypt's annual urban consumer price inflation slowed to 12.0 percent in August 2025, down from 13.9 percent in July, marking the third consecutive month of easing inflation and coming in below market expectations. This decline reflects a significant improvement from the peak inflation rate of 38 percent recorded in September 2023, aided by an $8 billion financial support package from the International Monetary Fund in March 2024 and ongoing monetary policy tightening by the Central Bank of Egypt. The reduction was driven largely by a sharp slowdown in food inflation and moderated price rises in transport, restaurants, hotels, and clothing, although housing inflation and furnishings saw some acceleration. Despite a slight monthly increase of 0.2 percent in the Consumer Price Index, price drops in meat, poultry, fish, seafood, fruits, and transportation services helped temper the inflationary pressures. The easing inflation trend led the Central Bank of Egypt to cut its overnight lending rate by 200 basis points in late August, the third such reduction in 2025, signaling a shift towards fostering economic growth and stability. Overall, these developments indicate gradual stabilization in Egypt's economy amid corrective measures and international financial support.