Egypt Inflation Below Forecasts
2026-01-10 06:43
By
Chusnul Chotimah
1 min. read
Egypt’s annual urban inflation rate stood at 12.3% in December 2025, unchanged from the previous month and below the market forecast of 12.5%, as the impact of higher fuel prices in October faded.
The latest reading came despite food inflation, a major component of the inflation basket, accelerating to 1.5% from 0.7% in October, which was the lowest level since April 2021.
The acceleration in food prices was partly offset by a deceleration in transport costs (28.4% vs 28.9% in November), communications (0.4% vs 11.7%), and restaurants and hotels (12.8% vs 13.4%), while miscellaneous goods and services and clothing both remained steady at 11.3% and 14.9%, respectively.
Meanwhile, furnishings inflation accelerated slightly (12.6% vs 12.4%), while housing inflation continued to rise (29.2% vs 27.9%) due to the lingering impact of rent increases.
Monthly, the CPI rose 0.2% in December, easing slightly from a 0.3% gain in November and marking the softest monthly increase in five months.