Ramona Moubarak, director for MENA Country Risk at BMI, Fitch Solutions, said Egypt's inflation path is expected to encounter temporary bumps in the coming months due to unfavourable base effects and further adjustments to administered prices. Egypt's annual headline inflation accelerated to 13.5 per cent in April 2025, up from 13.1 per cent in March. Moreover, the country's Consumer Price Index (CPI) climbed to 253.8 points in April, registering a monthly increase of 1.3 per cent compared to March 2025, according to data released by the Central Agency for Public Mobilisation and Statistics (CAPMAS). She added that the low oil price environment has almost eliminated the gap between domestic pump fuel prices and global benchmarks, with only one more increase needed to meet the IMF target of ending fuel subsidies on most products. Despite a slight rise in inflation in April, Moubarak expects the Central Bank of Egypt to proceed with a rate cut at its upcoming meeting on May 22. Monthly inflation eased to 1.3 per cent, and the real policy rate remains high at around 11.7 per cent. She noted that the CBE will likely seek to reduce rates to stimulate domestic investment. A pause in US tariffs, which helped ease market turbulence, also gives the central bank more scope to relax monetary policy. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
