Cairo – March 10, 2025: Egypt's inflation data for February 2025 reveals significant changes, with the urban consumer inflation rate falling sharply to 12.8 percent from 24.0 percent in January 2025.
According to the Central Agency for Public Mobilization and Statistics (CAPMAS), the year-on-year urban inflation remains significantly lower than the peak of 38 percent recorded in September 2023, but monthly increases continue, especially in food and transportation.
On a month-to-month basis, Egypt's urban inflation rate saw a more modest rise of 1.4 percent in February, compared to 1.5 percent in January.
The primary factor behind this sharp decline in urban consumer inflation is the base effect, which occurs as the high inflation levels of the past two years (particularly from the global economic disruptions following the Russian invasion of Ukraine) no longer influence current data.
Inflation had surged to an all-time high of 38 percent in September 2023 due to soaring commodity prices and economic instability. Now, these previous inflationary pressures are being phased out of the calculations, leading to a noticeable dip in urban inflation.
Food and beverage prices, key drivers of urban consumer inflation, showed a notable increase. Food inflation climbed by 3.7 percent on an annual basis in February 2025, compared to a 0.2 percent rise from January.
Certain food items, especially fruits, experienced sharp price hikes, with an annual increase of 44.1 percent. Meanwhile, bread and cereals saw an increase of 7.2 percent, and dairy products rose by 7.9 percent. However, there were some easing in certain categories: vegetables experienced a 7 percent drop, while oils and fats decreased by 3.4 percent.
Other important sectors, such as transportation, saw steep price hikes, with an annual increase of 32.4 percent. The price rise was driven by higher costs of vehicle purchases and fuel prices. Similarly, housing, water, electricity, gas, and fuel prices rose by 17.3 percent, continuing to add pressure on households.
According to CAPMAS, the headline inflation rate for February 2025 stood at 12.8 percent, the same as the urban inflation for that month, signaling a consistent trend across both urban and rural price data.
In comparison, headline inflation had been at 24 percent in January 2025, indicating the broader impacts of price changes across Egypt's entire population. While headline inflation has dropped significantly, it remains a key concern, especially in the context of food and energy prices.
Despite the positive decrease in urban inflation, the Egyptian government has long-term goals for stabilizing prices.
The Central Bank of Egypt aims to bring headline inflation down to an average of 5 percent (±2 percentage points) by the fourth quarter of 2026.
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