Moreover, the monthly core inflation recorded 1.3 percent in October 2024, down from 1.8 percent in October 2023 and one percent in September 2024, the CBE reported. 

Meanwhile, the monthly urban headline inflation stood at 1.1 percent in October 2024, compared to one percent in October 2023 and 2.1 percent in September 2024, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).

Urban headline inflation tracks the rate of price increases for goods and services commonly consumed by urban households, whereas core inflation excludes fluctuating items like food and energy prices.

Furthermore, CAPMAS reported that Egypt's annual headline inflation rose for the third consecutive month, reaching 26.3 percent in October, up from 26 percent in September.

However, the monthly headline inflation eased to 1.5 percent, down from 2.3 percent in September.

Similarly, the country's annual core inflation rate decreased by 0.1 percent in September, dropping to 25 percent from 25.1 percent in August.

Containing and reducing inflation remains a top priority for Egypt as part of its $8 billion loan agreement with the International Monetary Fund (IMF).

Fitch Ratings projected that inflation will fall to 12.5 percent by the end of the fiscal year (FY) 2025.

The IMF's Regional Economic Outlook (REO) report, which focuses on the Middle East and Central Asia, also forecasted Egypt's inflation rate to sharply decline to 16 percent by the end of FY2024/2025, which concludes in June 2025.

The CBE initially set an inflation target of seven percent, with a margin of ±2 percent.

The CBE's Monetary Policy Committee (MPC) determines key interest rates based on global and domestic economic trends, focusing particularly on inflation and the performance of the local currency relative to the US dollar.

The MPC is scheduled to meet on November 21 to review key interest rates.

In its recent meeting, the CBE decided to maintain the overnight deposit rate, overnight lending rate, and main operations rate at 27.25 percent , 28.25 percent, and 27.75 percent, respectively.

Since March 2022, the central bank has raised key interest rates by 1900 basis points.