Egypt’s Inflation Rate Drops Sharply in February 2025

Egypt’s inflation rate saw a significant decline in February 2025, according to data released by the Central Bank of Egypt (CBE) on Monday. 

The country’s core inflation rate dropped by 12.6%, reflecting easing price pressures and the impact of tight monetary policies.

Inflation Decline Across Key Indicators:

The annual core inflation rate fell to 10% by the end of February 2025, compared to 22.6% in January. Similarly, annual urban inflation, which measures price changes in cities, declined by 11.2% in February, bringing the rate down to 12.8%, from 24% in the previous month.

Consumer Price Index (CPI) and Monthly Inflation Trends:

The CBE reported that the monthly core consumer price index (CPI) rose by 1.6% in February, slightly lower than the 1.7% recorded in January 2025. In comparison, February 2024 saw a much sharper increase of 13.2%.

Meanwhile, data from the Central Agency for Public Mobilization and Statistics (CAPMAS) showed that the monthly urban inflation rate rose by 1.4% in February, down from 1.5% in January. A year earlier, in February 2024, this figure stood at 11.4%, highlighting a marked improvement in price stability.

Inflation Outlook: Further Declines Expected

The CBE expects inflation to continue its downward trajectory through the first quarter of 2025, driven by the cumulative effects of monetary tightening and a favorable base-year effect. 

However, the central bank cautioned that while the decline in inflation is expected to persist, the pace may slow due to ongoing fiscal consolidation measures. Over the medium term, inflation rates are projected to return to historical norms, signaling improved economic stability and better inflation expectations.

The sharp drop in inflation suggests that Egypt’s monetary policies are yielding results, providing a more stable economic environment and a positive outlook for the country’s financial future.