Egypt inflation eases annually, monthly prices jump as CBE weighs further rate cuts

Egypt’s annual inflation eased slightly in January to 10.1%, official data showed, ahead of the Central Bank of Egypt’s Thursday meeting to set interest rates. 

While annual inflation in January fell 0.2% compared with the previous month, monthly inflation rose to 1.5% from 0.1% in December, reflecting cost-of-living pressures.

The figures come ahead of the Central Bank of Egypt’s policy meeting and may give policymakers some scope to continue easing, although the sharp monthly increase underscores lingering inflationary risks.

The Central Agency for Public Mobilization and Statistics (CAPMAS) said in a statement Tuesday that meat and poultry prices rose 5.1% in January from the previous month. Vegetables rose 8.5%, while fruit prices fell 2.5%.

The central bank cut its deposit and lending rates by 7.25% in 2025 to bring financing costs back to normal levels after a sharp tightening cycle that began in 2022. With inflation relatively calmer, it is expected to resume easing this year.

In previous statements to Al Manassa, financial analysts expected the central bank to continue cutting interest rates over the next year by up to 6%, supported by falling inflation, exchange-rate stability, improved foreign currency conditions in the market, and a similar direction by the Federal Reserve.