Egypt’s annual urban consumer price inflation dropped to 25.7% in July from 27.5% in June, according to the country’s statistics agency CAPMAS. This decrease was more significant than analysts had predicted.
Month-on-month prices fell by 0.4% in July, compared to a 1.6% increase in June. Food prices declined by 0.3% but remained 28.5% higher than a year earlier.
Core inflation, which excludes volatile items like fuel and certain foods, also slowed to 24.4% from 26.6% in June, according to central bank data.
Prime Minister Mostafa Madbouly stated that Egypt aims to reduce inflation to below 10% by late 2025 or early 2026.
A recent analyst poll had projected urban inflation would ease to 26.6% in July. Inflation peaked at 38.0% in September.
Egypt has implemented tighter monetary policies under an $8 billion International Monetary Fund (IMF) support package, which included raising interest rates by 800 basis points this year, increasing domestic prices, and devaluing the currency. The government has also raised the price of subsidized bread by 300% and fuel by up to 15%.
The deficit reached 505 billion Egyptian pounds ($10.27 billion) in the fiscal year ending June 30, against a budget of 3.016 trillion pounds.