The Central Agency for Public Mobilisation and Statistics announced that Egypt's annual urban inflation rate stabilized at 12.3% in December 2025, unchanged from November. Month-on-month inflation eased to 0.2%, signaling ongoing slowdown in price pressures. Declines in food prices primarily drove this stability.
The Central Agency for Public Mobilisation and Statistics (CAPMAS) issued a statement on Saturday confirming that the annual inflation rate in Egypt's urban areas held steady at 12.3% for December 2025. This matched the November figure, while month-on-month inflation dipped from 0.3% to 0.2%. Nationally, the consumer price index (CPI) stood at 264.2 points, reflecting an annual inflation of 10.3% against 23.4% in December 2024.
CAPMAS credited the primary drop to falling prices in key spending categories, especially food. Meat and poultry prices fell 1.1%, dairy products, cheese, and eggs declined 1.2%, fruits dropped 1%, vegetables 2%, and sugar 0.1%. Non-food items also eased, with household appliances down 0.5% and audio-visual, photographic, and information-processing equipment off 0.4%.
Still, modest rises occurred in several areas, including cereals and bread (0.1%), oils and fats (0.3%), fabrics (1.6%), ready-made garments (0.4%), and electricity, gas, and other fuels (1.6%). Overall monthly inflation for the republic increased 0.1% in December.
This data followed the Monetary Policy Committee (MPC) of the Central Bank of Egypt's decision to cut key rates by 1% at its last 2025 meeting, setting the overnight deposit rate at 20%, lending rate at 21%, and main operation rate at 20.5%. The MPC projected further inflation declines in 2026, nearing the official target of 7% ±2% by the fourth quarter. It warned, however, that non-food inflation's slow easing, fiscal consolidation, and global geopolitical tensions could moderate the pace.
The committee plans eight meetings in 2026, starting February 12, to assess policy rates. The cuts represent a cumulative 7.25% reduction across five 2025 meetings, signaling a shift from tightening to easing.
