Egypt’s Core Inflation Rises Slightly to 11.6%, Says Central Bank

Egypt's annual core inflation rate edged up to 11.6% in July 2025, up from 11.4% in June, according to a statement released Sunday by the Central Bank of Egypt (CBE). 

The data, which underscores ongoing inflationary pressures in the economy despite recent cooling trends, arrives amid cautious optimism about the broader economic outlook.

The monthly core inflation, which strips out volatile items such as food and energy, recorded a deflation of -0.3% in July. This contrasts with a sharper monthly deflation of -0.5% in July 2024, and -0.2% in June 2025, showing a potential stabilization in consumer prices.

In parallel, Egypt’s official statistics agency, the Central Agency for Public Mobilization and Statistics (CAPMAS), reported that the monthly headline inflation rate for urban consumers stood at -0.5% in July 2025, slightly improving from 0.4% in July 2024, and down from -0.1% in June 2025.

On a year-on-year basis, urban headline inflation slowed to 13.9% in July, compared to 14.9% in June. While still high, this decline offers a modest sign that the government's monetary tightening and subsidy adjustments may be gradually taking effect.

The figures reflect a complex balancing act for the Central Bank, which has been grappling with the aftermath of global supply chain shocks, local currency depreciation, and structural fiscal reforms. The narrowing gap between core and headline inflation suggests that while food prices may be stabilizing, underlying price pressures in other sectors remain persistent.

Analysts expect the bank’s Monetary Policy Committee to weigh these numbers carefully in its next interest rate decision, especially as Egypt continues to navigate a post-IMF reform program and seeks to maintain investor confidence.