Egypt: Inflation stabilizes in December
Latest reading: Consumer prices increased 12.3% in annual terms in December, unchanged from the previous month’s reading. Accordingly, average inflation came in at 14.1% overall in 2025, roughly halving from 2024’s 28.3%.
Relative to the prior month’s figures, there were higher price pressures for food and non-alcoholic beverages—the largest component in the consumer price index basket (+1.5% in annual terms vs +0.7% in November) and housing and utilities (+29.2% vs +27.9% in November). In contrast, price pressures eased for transportation in December (+28.4% vs +28.9% in November).
Meanwhile, core consumer prices were up 11.8% on a year-on-year basis in December, following a 12.5% rise in the prior month.
Finally, consumer prices rose 0.19% in December in month-on-month terms, following a 0.30% increase in the prior month.
Outlook: Our panelists see consumer prices rising at a milder pace than in calendar year (CY) 2025 in CY 2026. This would mark the third consecutive year of moderating inflation, following the all-time high of 33.9% in 2023, when sharp currency depreciation and elevated international commodity prices fueled price pressures. Looking further ahead, our panelists expect inflation to continue easing in 2027.