FX.co ★ Egypt June Inflation Rate Falls More than Expected

In June 2025, Egypt's annual urban inflation rate eased to 14.9%, down from 16.8% in May, surpassing analysts’ expectations of 16.2% and halting a three-month upward trend. While the prices of food and beverages decreased, fuel costs remained significantly high following the Egyptian government's decision in April to increase petrol, diesel, and other energy prices by up to 15%. Additionally, Egypt's parliament sanctioned several amendments to the value-added tax (VAT) legislation in late June, potentially causing an uptick in prices for products such as cigarettes, alcoholic beverages, and crude oil. On a monthly basis, the Consumer Price Index (CPI) decreased by 0.1% in June, representing the first instance of deflation since May 2024, after a rise of 1.9% in the previous month.