Egypt annual core inflation rises to 11.6% in July

On a monthly basis, the core inflation decreased to negative 0.3 percent in July 2025, an improvement from negative 0.5 percent in July 2024 and a slight drop from negative 0.2 percent in June 2025.

In tandem, the Central Agency for Public Mobilization and Statistics (CAPMAS) announced that urban headline inflation recorded negative 0.5 percent for July 2025, compared to 0.4 percent in July 2024 and negative 0.1 percent in June 2025.

It added that the urban headline inflation stands at 13.9 percent year-on-year, down from 14.9 percent in June 2025.

These inflation trends highlight the evolving economic landscape in Egypt, with core inflation showing signs of stabilization amid broader economic challenges.

Global inflation is on a downward path, with headline inflation expected to decrease to 4.2 percent in 2025 and 3.6 percent in 2026. This is largely consistent with the projections of the April World Economic Outlook (WEO) report, published by the International Monetary Fund (IMF) in July.

This decline is primarily due to reduced demand and falling energy prices despite the notable regional differences.

In the United States, tariffs are creating a supply-side shock that is gradually impacting consumer prices, causing inflation to remain above the Federal Reserve’s two percent target through 2026.

The Egyptian government is committed to adjusting retail fuel prices toward cost recovery, expected in December 2025, creating additional fiscal room for targeted social assistance under its ongoing $8 billion loan deal with the IMF.