CAPMAS also announced the acceleration of the country’s monthly headline inflation rate in May, rising by 1.8 percent to 258.4 points.

According to the agency, rising prices across several consumer groups were the main drivers of the inflation increase. These included grains and bread, which slightly increased by 0.1 percent, while meat and poultry prices rose by 1.2 percent. Fish and seafood prices climbed by 2.4 percent, and oils and fats increased by 0.2 percent.

Moreover, fruit prices surged significantly by 13.4 percent, while vegetables went up by 2.1 percent. The sugar and sugary foods cost increased by 0.2 percent, and prices for mineral water, soft drinks, and natural juices rose by 1.3 percent.

Other increases were recorded in the prices of fabrics (up by 1.7 percent), ready-made clothing (2.9 percent), and footwear (1.2 percent). Housing-related categories also saw price increases, with actual rents and housing maintenance rising by 1.2 percent and 1.8 percent, respectively. Water and other housing-related services increased by 0.7 percent, while electricity, gas, and other fuels climbed by 2.1 percent.

Medical products and equipment saw a sharp increase of 6.9 percent, while outpatient medical services rose by 1.2 percent.

CAPMAS calculation also showed that transportation became more expensive, with vehicle purchases up by 0.3 percent, spending on private transport up by 6.6 percent, and transportation services rising by 1.3 percent. Meanwhile, the cost of organized tourism trips surged by 22.6 percent, while prices of ready-made meals increased by 1.1 percent, hotel services by 0.2 percent, and personal care items and services by 1.1 percent.

Despite the overall increase in inflation rates, CAPMAS reported that prices in some categories declined. These included dairy, cheese, and eggs, which dropped by 2.7 percent. Tobacco prices declined by 0.1 percent, and household and garden tools and equipment fell by 0.1 percent. Postal services recorded a significant decline of 4.1 percent, and the prices of audio-visual, photographic, and IT equipment fell by 1.6 percent. Personal belongings also saw a decrease of 0.9 percent.

The CAPMAS readings for May signal that inflation rates are still well beyond the inflation rate target the Central Bank of Egypt (CBE) sets at seven percent (± two percent) in the fourth quarter of 2026.

The CBE’s Monetary Policy Committee (MPC) cut the key interest rates in May by one percent (100 basis points), bringing the total number of cuts it has applied since the start of the year to three percent. The move came against the backdrop of the easing of inflationary pressures and the continued economic recovery.

The MPC's upcoming meeting is scheduled for 10 July 2025.

It's worth noting that the discussions between Egypt and the International Monetary Fund (IMF) are still in progress regarding the completion of the fifth review of the $8 billion Extended Fund Facility (EFF) loan programme, within which containing Egypt’s high inflation is a key commitment.