Egypt annual core inflation drops by 0.7% in November to 23.7%

Moreover, the monthly core inflation decreased to 0.4 percent in November 2024, down from one percent in November 2023 and 1.3 percent in October 2024, the CBE reported. 

Meanwhile, the monthly urban headline inflation stood at 0.5 percent in November 2024, compared to 1.3 in November 2023 and 1.1 percent in October 2024, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).

Urban headline inflation measures the rate of price increases for goods and services typically consumed by urban households, while core inflation excludes volatile items such as food and energy prices.

CAPMAS also reported that Egypt’s annual headline inflation decreased in November for the first time in three months to 25 percent, down from 26.3 percent in October.

Furthermore, the monthly headline inflation decreased by 0.1 percent in November to 1.4 percent, compared to 1.5 percent in October.

Similarly, the country's annual core inflation rate decreased by 0.6 percent in November, dropping to 24.4 percent from 25 percent in October.

Containing and reducing inflation remains a key priority for Egypt as part of its $8 billion loan agreement with the International Monetary Fund (IMF).

Fitch Ratings, an American credit rating agency, forecasted that Egypt's inflation would drop to 12.5 percent by the end of FY2025.

The IMF's Regional Economic Outlook (REO) for the Middle East and Central Asia also predicted the country’s inflation rate to decrease significantly to 16 percent by the end of FY2024/2025, which ends in June 2025.

The CBE had initially set an inflation target of seven percent, with a permissible margin of ±2 percent.

The CBE's Monetary Policy Committee (MPC) adjusts key interest rates based on domestic and global economic conditions, focusing on inflation and the performance of the local currency against the US dollar.