Egypt core inflation rate falls to 11.2% year-on-year in January

Egypt’s core inflation rate slowed to 11.2 per cent year-on-year in January, down from 11.8 per cent in December, according to a statement issued by the Central Bank of Egypt.

The Central Bank of Egypt announced that Egypt’s inflation rate decreased to 11.8 per cent year-on-year in December. The rate had recorded 12.5 per cent in November.

Egypt’s annual core consumer price index (CPI) inflation eased to 10.7 per cent in August 2025, down from 11.6 per cent in July, the Central Bank of Egypt (CBE) said.

On a monthly basis, core CPI rose 0.1 per cent in August, compared with a 0.3 per cent fall in July and a 0.9 per cent increase in August 2024.

The Central Bank of Egypt (CBE) announced a 200 basis point cut in interest rates during its Monetary Policy Committee meeting in August 2025.

The overnight deposit rate was reduced to 22%, the lending rate to 23%, and the main operation rate to 22.5%. The discount rate was also lowered to 22.5%.

The CBE attributed the decision to easing global and domestic inflation, improving growth outlook, and reduced external and fiscal risks.

Domestically, real GDP growth is expected to reach 4.5% in the 2024/2025 fiscal year, up from 2.4% in the previous fiscal year, while inflationary pressures remain moderate. The unemployment rate dropped to 6.1% in Q2 of 2025, compared to 6.3% in Q1 of the same year.

Meanwhile Egypt’s net international reserves (NIRs) have kept their upward trajectory, rising by almost 2.2 per cent to record a new high of $52.59 billion by end of January 2026, the Central Bank of Egypt (CBE) announced.

The figure shows a $1.142 billion increase from $51.4 billion in December 2025 and a rise of around 4.7 per cent or $2.39 billion, from November 2025.

NIRs also rose by 8.8 per cent or $4.185 billion, in 2025.

Remittance inflows from Egyptians working abroad rose 42.8 per cent year on year in the first ten months of 2025, reaching $33.9 billion, up from $23.7 billion in the same period last year, the Central Bank of Egypt (CBE) said on Sunday, Ahram Online reported.

Monthly inflows also increased sharply, climbing 26.2 per cent in October to $3.7 billion, compared with $2.9 billion in October 2024, according to the bank.

Egypt’s net foreign reserves exceeded $50 billion for the first time, rising by $538 million to reach $50.071 billion at the end of October 2025, compared to $49.533 billion in September.

In a statement today, the Central Bank of Egypt said that the increase reflects the continued improvement of economic indicators and the Egyptian economy’s ability to strengthen its foreign exchange holdings and support financial stability.

The World Bank has forecast an improvement in Egypt’s economic growth in the coming period, supported by stronger exports and a recovery in economic activity.

In a report released on Wednesday and announced by the Egyptian Cabinet, the World Bank said economic growth is expected to reach 4.3 per cent in the 2025/2026 fiscal year, rising to 4.8 per cent in 2026/2027, amid an improving macroeconomic environment.

The Bank said the outlook is supported by stronger private demand following the easing of import and foreign currency restrictions, which is expected to boost economic activity and increase the contribution of net exports to growth.

Meanwhile, the Vietnam’s automobile market recorded double-digit growth in 2025, with nearly 376,000 vehicles sold by members of the Vietnam Automobile Manufacturers’ Association (VAMA). The Vietnam News Agency (VNA) quoted VAMA as saying that its members sold a total of 375,736 vehicles in 2025, an increase of 10.5 per cent compared to the previous year.

Sales gained strong momentum in December, driven by promotions and incentives during the year-end peak season. A total of 47,067 units were delivered to customers last month, up 20 per cent from November and 49 per cent compared to the same period in 2024, making it one of the strongest months in recent years in terms of market demand.

Passenger cars remained the main growth driver, with 35,803 units sold in December, up 25 per cent month-on-month.

The Ministry of Petroleum and Mineral Resources of Egypt said on Friday that several oil and gas companies operating in Egypt have drilled a number of successful wells in their concession areas in the Western Desert, Eastern Desert and the Nile Delta, including five new exploratory wells.

In a statement, the ministry said the new wells are expected to add around 47 million cubic feet of natural gas and about 4,300 barrels per day (bpd) of crude oil and condensates to Egypt’s daily production.

WAM