Egypt’s annual urban consumer price inflation quickened to 12.5% in October from 11.7% in September, data from statistics agency CAPMAS showed on Monday.
This uptick in inflation comes amid a series of economic reforms and tightening from the Central Bank of Egypt, including recent fuel-price increases and wage adjustments.
The increase in inflation is primarily driven by rising prices in key categories, including electricity, gas, and fuel, which saw a 6.7% rise, private transportation costs, which increased by 8.6%, and transportation services, which went up by 8.2%.
Prices of vehicles rose by 1.3%, while vegetables and grains, including bread, saw increases of 1.2% and 0.5%, respectively.
According to forecasts, Egypt’s inflation rate is expected to ease to 16% by June 2025, driven by base effects and policy tightening measures.
The International Monetary Fund (IMF) projects an average economic growth rate of around 5% for Egypt in the medium term, relying on continued economic reforms and an easing of regional conflicts.
The government aims to reduce inflation to 10% by 2026, following a decline to 12.5% in February, the lowest rate in three years.
Prime Minister Mostafa Madbouly announced that recent economic reforms, despite their challenges, are beginning to yield results, with stability and lower prices of key commodities, including food, vegetables, and fruits.
