Egypt’s core inflation dropped to 10% in February 2025, with monthly CPI inflation at 1.6%, compared to higher rates in January and February 2024. The urban annual inflation rate also decreased significantly. Despite price increases in some sectors, overall stability in key goods contributed to this decline, leading to unchanged interest rates by the CBE to manage inflation risks.
In February 2025, Egypt’s Central Bank (CBE) reported a drop in monthly core CPI inflation to 1.6%, down from 13.2% in February 2024 and slightly below January’s 1.7%. Year-on-year, core CPI inflation decreased significantly to 10%, compared to 22.6% in January 2025. This indicates a stabilization trend in Egypt’s economy following inflationary pressures.
The urban annual inflation rate also showed improvement, falling to 12.8% in February 2025, down from 24% in January, influenced by a base-year effect. The Central Agency for Public Mobilization and Statistics (CAPMAS) noted a monthly inflation rate in urban areas of 1.4%, a slight decline from 1.5% in January. February’s national consumer price index reached 246.8 points, reflecting a 12.5% annual inflation rate, reduced from 23.2% in January.
Key price reductions in several sectors contributed to this decline. Notable decreases included an 8.2% drop in vegetable prices, 0.2% in coffee, tea, and cocoa, and 0.1% for household maintenance goods. Stability in prices for water, housing services, electricity, gas, and fuels also supported lower inflation rates. However, some commodities experienced price increases.
In conclusion, Egypt is experiencing a notable decrease in core and urban inflation rates as of February 2025, attributed to strategic monetary policies and base-year effects. Despite certain price increases in vital commodities and services, the overall trend suggests a positive direction for the economy. The CBE continues to adopt a cautious approach in its monetary policy, focusing on sustaining this downward inflation trend amidst global uncertainties.
Original Source: www.dailynewsegypt.com
