The Central Bank of Egypt (CBE) expects inflation to continue declining over the coming two years, gradually moving towards its target range of 7 per cent (±2 percentage points) by the fourth quarter of 2026, according to CBE's Monetary Policy Report, Q1 2025 released on Monday. According to the Bank's outlook, average inflation is projected to fall to between 14 and 15 per cent in calendar year 2025, and then further to between 10 and 12.5 per cent in 2026. This compares to an average of 28.3 per cent recorded in 2024. The bank noted that the disinflation trend will proceed at a slower pace than the sharp decline seen in the first quarter of 2025. It attributed this to the impact of ongoing and planned fiscal consolidation measures, as well as the continued pressure from non-food inflation. It also warned that the forecast depends on several assumptions. Any change to these could alter the inflation path over the medium term. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
