Egypt inflation 2025 eases; CBE cuts rates even as fuel prices rise again

Tuesday 4th November 2025

by inAfrika Newsroom

Egypt inflation 2025 continues to cool. Urban CPI slowed to 11.7% in September from 12% in August, according to CAPMAS. Moreover, the central bank cut rates by 100 bps on October 2 after a 200 bps move in August.

The easing comes with trade-offs. On October 17, the government raised fuel prices for the second time this year, lifting diesel and gasoline bands by about 12%. Consequently, transport and logistics costs will feel near-term pressure, even as headline inflation trends lower.

Credit signals improved. S&P upgraded Egypt to ‘B’ on October 10, citing reform traction and external support. In addition, IMF reviews remain in focus after earlier delays and combined assessments flagged by sources in mid-year. Therefore, markets will watch whether disinflation survives new energy prices.

Why it matters: Egypt inflation 2025 shapes borrowing costs and FX risk across North Africa. Lower inflation gives room to ease policy and support growth. However, fuel hikes can pass through to food and fares, which may slow the path to single-digit inflation.

For Africa, the signal is clear. Macro repair is possible if FX supply improves and budgets hold discipline. Moreover, credible rate paths and realistic energy pricing can unlock investment, especially in logistics and consumer sectors that rely on stable costs.

Execution will decide outcomes. Authorities must stabilize Suez-related revenues, keep progress on asset sales, and maintain targeted social support. If those pieces align, Egypt inflation 2025 can stay on a downward path while growth firms up