Egypt’s Central Agency for Public Mobilization and Statistics (CAPMAS) reported that annual urban consumer price inflation slowed to 12.0% in August 2025, down from 13.9% in July. This marks the third consecutive month of easing inflation and came in below market expectations of 12.7%. The trend signals gradual stabilization after inflation peaked at a record 38% in September 2023.
The key driver behind the decline was a sharp slowdown in food inflation, which dropped to 2.1% in August, the lowest since May 2021. Other categories also saw moderation, 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%). However, housing inflation edged up to 16.2% and furnishings to 13.4%. Communication costs remained unchanged at 12.1%.
On a monthly basis, Egypt’s Consumer Price Index (CPI) rose 0.2% to 257.1 points in August, reflecting modest upward price pressures.
The easing trend follows strong monetary and financial interventions. In March 2024, Egypt secured an $8 billion IMF support package, which has been crucial for stabilizing the economy. The Central Bank of Egypt has responded by gradually loosening its monetary policy, including a 200 basis point interest rate cut on August 28, 2025, its third reduction this year.
Economists view the latest data as a sign that Egypt’s inflation crisis may be under control, though risks remain from external commodity shocks and currency fluctuations. With food prices stabilizing and IMF-backed reforms underway, the government hopes to sustain disinflation while supporting growth.
