Egypt Inflation Expected to Rise to 12.5% in December

Recent estimates suggest that inflation in Egypt may edge slightly higher in December, reaching around 12.5%, as food prices — a key component of the inflation basket — remain relatively stable.

A survey of analysts indicated a modest upward bias in the annual urban consumer inflation rate compared with the previous month, highlighting continued market caution.

Experts noted that prices of several food items and services remained broadly stable recently, although rising poultry prices in January could push inflation in Egypt higher in the coming months.

This follows a significant decline from record-high inflation levels seen in 2023, supported by international financing agreements and improved financial stability indicators.

Central bank data also showed an increase in money supply, which may further influence the trajectory of inflation in Egypt going forward.

Investors are closely watching upcoming monetary policy decisions as expectations persist for a more accommodative stance should inflation stabilize.