Egypt Inflation to Reach Less than 10% by End of 2025, PM Says

Prime Minister Mostafa Madbouly expects Egypt's inflation rate to reach less than 10% by the end of 2025.

Madbouly said in a press conference on Wednesday that foreign exchange flows to Egypt are proceeding well.

He explained that work is underway with the Minister of Investment and Foreign Trade on new incentives, and the outlines of a new program to repay export burdens will be announced soon.

He added that the government is moving strongly to secure Egypt's needs for petroleum products during the coming period.

It is noteworthy that data from the Central Agency for Public Mobilization and Statistics in Egypt showed an increase in the annual inflation rate in Egyptian cities, for the first time in 5 months, to 26.2% in August from 25.7% in July.

The annual inflation rate for the entire republic recorded 25.6% for August 2024, compared to 39.7% for the same month of the previous year.

Egypt signed an $8 billion financial support package with the International Monetary Fund in March to help control a monetary policy that fuels inflation but requires price increases for a wide range of domestic products.

As a result, the government has raised prices on a wide range of subsidized products to control a budget deficit that reached 505 billion Egyptian pounds ($10.3 billion) in the fiscal year that ended on June 30.

According to the median forecast of 19 analysts, annual urban consumer price inflation slowed to 25.1% in August from 25.7% in July.

The general consumer price index for the country as a whole reached 231.1 points for August 2024, recording monthly inflation of 1.9%.

This is due to the increase in the vegetables group by 14.3%, the transportation services group by 14.9%, the postal services group by 6%, the home appliances group by 2.8%, the dairy, cheese and eggs group by 2.1%, the hospital services group by 2.8%, the fish and seafood group by 1.4%, the fruit group by 0.9%, the mineral and carbonated water and natural juices group by 1.7%, and the ready-made clothing group by 1.2%.