FX.co ★ Egypt Inflation Rate Hits 4-Month High

Egypt's annual urban inflation rate surged to 16.8% in May 2025, an increase from April's 13.9%, surpassing market projections of 14.9%. This represents the third month in a row of escalating inflation and the highest rate since January. The primary drivers behind this inflationary pressure were significant hikes in food and non-alcoholic beverage prices, which spiked by 11.0%—the highest in four months—compared to April's 6.0%. Additionally, prices accelerated for housing and utilities (rising to 14.9% from 13.9%), transport (42.1% from 37.4%), restaurants and hotels (17.9% from 16.9%), clothing and footwear (18.0% from 17.4%), and alcoholic beverages and tobacco (16.0% from 15.9%). Conversely, prices showed a slower increase in the sectors of recreation and culture (17.1% down from 20.8%), furnishings, household equipment, routine maintenance (13.8% from 15.2%), communications (12.2% from 12.3%), and other miscellaneous goods and services (14.4% from 14.5%). On a monthly scale, the Consumer Price Index (CPI) rose by 1.9% in May, marking the most significant rise over the past eight months, following a 1.3% increase in April, which had previously been the lowest in four months.