Egypt's annual headline inflation is projected to average 15-16 per cent in 2025 and 11-12 per cent in 2026 before easing towards the central bank's 7 per cent target, the Central Bank of Egypt (CBE) said Wednesday. "The annual headline inflation is expected to hover around current levels throughout the remainder of 2025, before steadily declining in 2026 towards its target of 7 percent (± 2 percentage points), on average, in Q4 2026." the CBE's latest Monetary Policy Report (MPR) read. "Annual headline inflation forecasts have been revised slightly upwards compared to the Q1 2025 MPR, averaging 15 -16 percent in 2025 and 11-12 percent in 2026 on average, down from 28.3 percent in 2024." The CBE said inflation continued to slow in the second quarter of 2025, albeit at a more moderate pace than in the first quarter. Annual headline inflation averaged 15.2 per cent in the second quarter, down from 16.5 per cent in the first quarter, while annual core inflation eased to 11.6 per cent from 13.6 per cent. Non-food inflation remained the "primary driver" of price growth during the second quarter, with "fiscal consolidation measures still continuing to exert an inflationary impact..." However, underlying inflation "continued its gradual downward trajectory during Q2 2025, reflecting ongoing dissipation of shocks and improvement in inflation expectations." the CBE added. Attribution: Amwal Al Ghad English Download
