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.

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Egyptian inflation projections for the next ten years from a panel of 18 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for Egyptian inflation.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Egyptian inflation projections.

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