Egypt Inflation Rate at Near 3-1/2-Year Low

The annual urban inflation rate in Egypt slowed for the third consecutive month to 12.0% in August 2025, down from 13.9% in July, after reaching a four-month high in May due to rising fuel prices and below market forecasts of 12.7%. This marked the lowest inflation rate since March 2022, mainly driven by a sharp slowdown in food inflation, which fell to its lowest level since May 2021 (2.1% vs 3.4% in July). Price increases also moderated across several categories, including transport (26.8% vs 41.5% in July), restaurants and hotels (13.8% vs 15.2%), clothing (14.8% vs 14.9%), and miscellaneous goods and services (12.0% vs 13.6%). Meanwhile, prices accelerated for housing (16.2% vs 15.9%) and furnishings (13.4% vs 12.9%). Inflation remained steady for communications (at 12.1%). On a monthly basis, the Consumer Price Index (CPI) rose 0.4% in August, rebounding from a 0.5% decline in July, and marking the first monthly increase in three months.