Egypt’s Inflation Rate Drops Significantly in February 2025

Updated 3/15/2025 9:00:00 AM

In February 2025, Egypt’s inflation rate fell to its lowest level since March 2022, as annual headline inflation stood at 12.1%. Despite seasonal pressures related to rising food prices at the beginning of Ramadan, a significant base-year effect contributed to inflation falling below 20%.

In this Factsheet, we will track Egypt’s inflation performance in February 2025, highlighting the leading sectors in terms of inflation rates.

Egypt reports two inflation figures on a monthly basis; the headline inflation, published by the Central Agency for Public Mobilization and Statistics (CAPMAS), and the core inflation, published by the Central Bank of Egypt (CBE). The headline inflation includes food and energy commodities, while the core inflation excludes food and energy prices due to prices volatility.
In December 2024, the CBE set inflation targets for the fourth quarter (Q4) of 2026 at 7% (±2 percentage points) on average and at 5% (±2 percentage points) for Q4 2028.
Between March 2022 and February 2025, Egypt’s average headline inflation rate was at 34.85%, peaking at 40.3% in September 2023.
The inflation rate has fallen gradually over the past four months, reaching 12.5% in February 2025, its lowest level in three years.
In February 2025, urban inflation in Egypt recorded 12.8%, with Assiut and New Valley governorates seeing the highest rates at 16.6%. On the other hand, rural inflation hit 12.2%, with Sohag governorate recording the highest rate at 21%.
The fall in February inflation rate was driven by price declines in vegetables (-7%) and oils and fats (-3.4%).
The highest inflation rates were recorded in fruits (44.1%), transportation (39.3%), and electricity, gas and other fuel (36.7%).
The most affected commodities by inflation in February were bread, seeing the sharpest price increase at 5%, followed by butane gas at 64.1% and soft drinks at 41.9%.

By: Amina Hussein