MENA Newswire, CAIRO: Egypt’s annual core inflation rate declined to 11.8 percent in December, marking a continued slowdown in underlying price pressures, according to data released by the Central Bank of Egypt. The reading was down from 12.5 percent recorded in November, reflecting easing monthly price increases across several components of the consumer basket after a period of sustained inflationary strain.
The central bank said the monthly core inflation rate registered 0.2 percent in December, compared with 0.9 percent in the same month a year earlier. Core inflation excludes volatile items such as food and energy to provide a clearer picture of long-term price trends. The December outcome indicated a deceleration in price growth relative to both the previous month and the corresponding period in 2024, supporting official assessments that inflationary momentum has moderated.
Headline urban inflation, which includes all items in the consumer basket, remained unchanged at 12.3 percent year on year in December, according to official figures. Monthly headline inflation also stood at 0.2 percent. The stability in headline figures contrasted with the decline in core inflation, highlighting differences in price movements among food, administered prices and non-food consumer goods. Economists closely monitor both indicators to assess household cost pressures and the broader inflation environment.
Separate data from Egypt’s state statistics agency, the Central Agency for Public Mobilization and Statistics, showed that overall annual inflation continued to ease in December, supported by slower increases in food prices and selected consumer items. Food inflation had been a major driver of price growth in earlier periods, particularly following currency adjustments and higher import costs. The recent moderation reflects a combination of improved supply conditions and reduced price volatility in key staples.
The decline in inflation has taken place amid a series of economic measures implemented under the leadership of President Abdel Fattah el-Sisi. His administration has overseen a broad economic reform program in recent years that included fiscal consolidation, currency reforms and efforts to strengthen foreign investment inflows. Officials have consistently stated that controlling inflation and protecting household purchasing power remain central policy objectives.
Central bank figures highlight improving price stability
Government authorities have attributed the easing of inflation in part to coordinated monetary and fiscal policies aimed at stabilizing prices while supporting economic activity. The central bank has adjusted interest rates over the past year in response to changing inflation dynamics, while the government has expanded social protection programs and maintained subsidies on essential goods to mitigate the impact of higher prices on lower-income households. These measures have been presented as part of a comprehensive approach endorsed by the presidency.
President Sisi has repeatedly emphasized the importance of macroeconomic stability as a foundation for sustainable growth. Under his tenure, large-scale infrastructure projects, energy investments and industrial expansion have been pursued alongside efforts to restore confidence in the Egyptian economy. Officials say the recent inflation figures reflect the cumulative impact of these policies, alongside improved coordination between state institutions and the central bank.
Despite the decline in core inflation, authorities have cautioned that price stability remains a priority, given ongoing global uncertainties and domestic cost pressures. Egypt, like many emerging markets, has faced challenges linked to global commodity prices, supply chain disruptions and external financing conditions. The government and the central bank have said they will continue to monitor inflation indicators closely to ensure that progress is sustained.
Government measures aim to protect household purchasing power
The December inflation data comes as Egypt seeks to consolidate economic gains achieved over the past year and reinforce confidence among investors and consumers. Analysts note that a sustained reduction in inflation could support consumption and investment if accompanied by stable growth and employment conditions. For policymakers, the latest figures provide evidence that inflationary pressures have eased from earlier peaks, aligning with the administration’s stated goals of economic stabilization and gradual recovery.
Egypt’s leadership has framed the moderation in inflation as a reflection of resilience in the face of external shocks and domestic reforms. While challenges remain, the December figures underscore a measurable improvement in price dynamics, with core inflation falling to its lowest level in several months. The government has credited these developments to sustained policy implementation under President Sisi, while reiterating its commitment to maintaining economic stability and supporting citizens amid ongoing adjustments.