Egypt’s inflation drops to 23.0% in january, supported by favorable base effect
- EconomicEgypt
- February 8, 2025
Lagos, Nigeria – Egypt’s annual urban inflation rate fell to 23.0% in January 2025, according to a poll released on Thursday, marking a slowdown in price increases after months of volatility.
AfricaHeadline Reports Team
editorial@africaheadline.com
The median estimate from 17 analysts projected inflation would ease from 24.1% in December to 23.0% in January, largely due to a favorable base effect.
The survey, conducted between February 3 and 6, indicated that inflation has been on a downward trajectory since November, following consecutive increases in August, September, and October.
According to Heba Monir of HC Securities, urban inflation is expected to decline to 22.8% year-on-year in January, supported by stable food and pharmaceutical prices, despite fluctuations in construction material costs.
Inflation peaked at a record 38% in September 2023, but has since retreated, offering some relief to consumers.
One of the key drivers of recent price surges has been a rapid expansion in the money supply (M2), which grew by a record 31.07% in 2024, according to data from the Central Bank of Egypt.
The state statistics agency CAPMAS is set to release official inflation figures on Monday morning, providing further insight into the sectors driving price changes at the start of the year.
