On a monthly basis, core inflation dropped to 0.1%, compared with 0.9% in August 2024.
Egypt’s annual core inflation rate eased to 10.7% in August, down from 11.6% in July, according to a statement from the Central Bank of Egypt (CBE).
On a monthly basis, core inflation dropped to 0.1%, compared with 0.9% in August 2024.
Meanwhile, the Central Agency for Public Mobilization and Statistics (CAPMAS) reported that annual urban inflation declined to 12% in August, compared with 13.9% in July. This marks the lowest level since March 2022, when inflation stood at 10.49%.
A Reuters poll published on Tuesday had projected urban inflation to ease to 12.7% in August. The slowdown, which has continued for a third consecutive month, enabled the Central Bank to cut interest rates by 200 basis points at the end of August, bringing total rate cuts so far this year to 525 basis points.
The decision was supported by the decline in Egypt’s annual headline inflation rate to 13.9% in July 2025, down from 14.9% in June, while core inflation held steady at 11.6%.
The Central Bank’s outlook, issued last month, pointed to a continued slowdown in inflation, with projections averaging between 14% and 15% during 2025, moving closer to its target range by the fourth quarter of 2026.
