CBE Expects Continued Decline in Annual Inflation Rate
The Central Bank of Egypt (CBE) expects the annual headline inflation rate to continue its gradual decline in the coming period, moving downward toward the target level of 7% (±2 percentage points) by the fourth quarter of 2026, according to the latest Monetary Policy Report issued by the bank.
The report indicated that the average headline inflation rate is projected to reach around 14% in 2025 and 10.5% in 2026, compared to 28.3% in 2024. This reflects a clear improvement in price stability, driven by the stabilization of monetary conditions and a reduction in inflationary pressures.
However, the CBE noted that several factors could limit the pace of disinflation in the coming period, most notably the fiscal consolidation measures planned for 2025 and 2026, which include adjustments in energy, cigarette, and electricity prices, along with the persistence of high non-food inflation.
