Egypt Inflation Rate Falls to 13.9% in July Amid Food Price Drop

Egypt's annual urban consumer inflation rate decreased to 13.9% in July 2025 from 14.9% in June, marking the second consecutive month of decline and the slowest rate since April. This reduction was primarily driven by a significant drop in food and beverage prices, including meat and poultry, fruits, and vegetables, despite slight increases in grains, seafood, and dairy products. The inflation rate has fallen dramatically from a peak of 38% in September 2023, aided by government reforms, energy price controls, and an $8 billion IMF-supported stabilization program. The Central Bank of Egypt has maintained a high key deposit rate to balance growth and inflationary pressures, while the Egyptian pound remains stable against the U.S. dollar. This cooling inflation trend is seen not just as temporary relief but as part of a structural adjustment that could enhance Egypt's export competitiveness and attract investment, particularly in agricultural and trade-linked sectors. Economists caution, however, that risks remain due to global market volatility and ongoing fiscal adjustments.