Egypt’s Inflation Rises for First Time in Five Months After Fuel Price Hike

According to the official statistics agency, urban consumer prices rose 12.5% year-on-year in October, up from 11.7% in September. On a monthly basis, inflation held steady at 1.8%.

The rise ends a months-long easing trend that began after inflation hit a record 38% in September 2023, a slowdown previously supported by currency stability and favorable base effects.

Authorities raised fuel prices by up to 13% in late October under an IMF-backed reform plan to strengthen state finances. The hike led to higher transportation and distribution costs, feeding into overall consumer prices.

Economists expect the impact to persist in November’s data, especially in fuel-dependent sectors.

Egypt’s benchmark interest rate currently stands at 21%, following a total reduction of 625 basis points since early 2025 to support investment and lower borrowing costs. However, analysts say the latest inflation figures may push the central bank to maintain rates unchanged at its November 20 meeting to preserve investor confidence in Egyptian debt markets.