Egypt's inflation continued to ease in early 2025, with both headline and core rates recording sharp declines, according to the Central Bank's Monetary Policy Report for Q1 2025 released on Monday. Annual urban headline inflation dropped to 16.5 per cent in the first quarter of 2025, down from 25.4 per cent in the previous quarter and 33.0 per cent in the same period a year earlier. Core inflation followed a similar trend, falling to 13.6 per cent in Q1 2025 from 23.8 per cent in Q4 2024 and 32.7 per cent in Q1 2024. The bank attributed the earlier surge in inflation to a mix of global and domestic factors. These included the Russia-Ukraine conflict, resulting volatility in global commodity prices, and rising geopolitical tensions in the region. Domestically, ongoing economic reforms contributed to heightened inflationary pressures and unanchored expectations. The central bank also noted that prices of international food commodities have been declining since early 2023, likely correcting the steep increases seen since mid-2020. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
