Moustafa Allam
After peaking at 38 per cent in September 2023, the Egyptian government has been exerting considerable effort to bring inflation down to reasonable levels. Two years later, the rate dropped to 11.7 per cent, year-on-year, this September, marking a notable improvement.
Data from the state-run Central Agency for Public Mobilization and Statistics (CAPMAS) showed that consumer prices in urban areas nationwide stood at 11.7 per cent in September, down from 12 per cent in August. However, on a monthly basis, inflation rose to 1.8 per cent, driven by higher prices in certain food categories.
Marking the peak in September 2023, inflation hit a historic 38 per cent. Ever since, the governmenthasadopted retreatment strategies, following a $57 billion financial rescue package signed in March 2024 in cooperation with the International Monetary Fund.
Now thatinflation rates are falling, the Central Bank of Egypt (CBE) has eased itsmonetary policy. Therefore, it has cutinterest rates four times since the start of 2025, totaling over six percentage points.
“This week, I felt some relief as prices of basic commodities have gone down a little,” said Mona Ismail, a 40-year-old housewife living in Cairo. “For instance, a bottle of local cooking oil fell from LE75 to LE68, and rice, which used to range between LE26 and LE35, now sells for LE18 to LE28.”
“We passed through hard times of skyrocketing prices,” she said. “Now we just hope prices keep falling so we can buy basic needs without stress every day.”
With prices of several other products, such as pasta, chicken, meat, and vegetables — also declining, people in local markets are becoming “a little more hopeful” after enduring months of high costs.
Farag Abdullah, an economist, said the recent decline in the inflation rate is the lowest in over two years, reflectingeconomic improvement and market stability, especially in food and consumer goods.
He attributed the decline to recent government actions that resolved last year’s supply bottlenecks, foreign currency shortages, and raw material issues.
Analysts also point out that a stable exchange rate of the pound against the dollar is another key factor behind lower inflation.
Prime Minister Mostafa Madboulihas recently said that inflation is expected to fall to 8 per cent in the second half of 2026, reiterating the government’s commitment to economic stability and social protection.
