File Photo: People walk past a fruit seller s stall in the Azhar district of Egypt s capital Cairo. AFP
The consumer price index rose to 264.2 points in December, while monthly inflation edged up 0.1 percent from November.
CAPMAS said the sharp annual slowdown was driven mainly by lower prices in several food categories and household goods, including vegetables, which fell 2 percent, dairy, cheese and eggs, down 1.2 percent, and meat and poultry, which declined 1.1 percent.
On a monthly basis, headline inflation increased marginally by 0.1 percent as falling food prices helped offset higher costs in housing, utilities and hospitality, the agency said.
Prices in the food and beverage sector, the largest component of the consumer basket, fell 0.8 percent month on month.
CAPMAS attributed the decline to lower prices for vegetables, dairy and eggs, and meat and poultry, which more than offset modest increases of 0.3 percent or less in cereals, bread and fats.
The housing, water, electricity and fuel sector recorded a 1.5 percent monthly increase, driven by a 1.9 percent rise in actual housing rents and a 1.6 percent increase in electricity and gas prices.
Transport and tobacco prices posted more modest gains, each rising 0.2 percent in December.
The inflation slowdown comes as the Central Bank of Egypt (CBE) has kept interest rates on hold, signalling a cautious stance despite recent moderation in price pressures.
In November, the CBE said underlying inflation, particularly in non-food sectors, remains elevated, while risks from energy prices and global uncertainties persist.
It expects inflation to fluctuate in the near term before easing gradually toward its medium-term target of 7% ±2 percentage points by late 2026, and has said future policy moves will depend on incoming data.
According to its latest projections released in October, the International Monetary Fund (IMF) expected Egypt’s inflation rate to fall sharply to 11.8 percent in the current FY2025/2026, which ends on 30 June 2026, from an average of 20.4 percent in FY2024/2025.
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