Annual urban headline inflation hits lowest rate in 2 years: CBE
Cairo – February 18, 2025: According to the Central Bank of Egypt (CBE), Egypt's annual urban headline inflation remained stable at 24 percent in January 2025, a slight decrease from 24.1 percent in December 2024.
This marks the lowest inflation rate recorded in two years.
The modest decline was primarily attributed to a reduction in non-food inflation, which fell from 26.7 percent to 26.2 percent. However, this was partially offset by a small rise in food inflation, which increased from 20.3 percent to 20.8 percent.
On a monthly basis, urban headline inflation stood at 1.5 percent in January 2025, slightly lower than 1.6 percent in the same month last year but higher than the 0.2 percent recorded in December 2024.
Core inflation, which excludes volatile items like food and energy, continued its downward trajectory, decreasing from 23.2 percent in December 2024 to 22.6 percent in January 2025.
On a monthly basis, core inflation rose by 1.7 percent, reflecting seasonal price increases, particularly for poultry and market rice. These price hikes are typical ahead of the Ramadan season.
Additionally, retail and services inflation saw a modest uptick due to rising costs in clothing, footwear, personal care items, household cleaning products, and higher restaurant and café bills.
Rural headline inflation showed a marginal decline, easing to 22.6 percent from 22.8 percent in December.
Nationwide headline inflation followed a similar trend, inching down from 23.4 percent in December 2024 to 23.2 percent in January 2025.
Significant contributors to inflation included food prices, with fresh fruit prices rising by 5.8 percent, while fresh vegetables saw a slight decrease of 2.3 percent. Poultry prices surged by 10.3 percent, driven by the seasonal pre-Ramadan demand.
Other core food items, including market rice, oils and fats, dairy products, red meat, sugar, pulses, confectionery, and tea, also saw price hikes, adding to inflationary pressures.
Retail items experienced a 2.6 percent increase in prices, primarily due to higher costs in clothing, footwear, personal care products, and household cleaning supplies. Meanwhile, services inflation rose by 0.7 percent, as consumers faced higher expenditures in restaurants, cafés, and rents. Additionally, the cost of regulated items climbed by 1.1 percent, mainly due to recent price increases in pharmaceuticals and tobacco.
The monthly core inflation dynamics were shaped by rising food prices, which contributed 0.93 percentage points to overall inflation. Retail goods accounted for an additional 0.50 percentage points, while services contributed 0.26 percentage points.
With the economy continuing to adjust to seasonal fluctuations and regulatory price changes, inflationary pressures are expected to remain under close scrutiny in the coming months.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
See - Sada Elbalad
16 hours ago
- See - Sada Elbalad
Malaysian Jewelry Exports Surge, Boosted By Gulf ,Asian Markets
Waleed Farouk Both Singapore and the United Arab Emirates are experiencing a significant increase in their purchases of Malaysian gold jewelry, as rising global gold prices have dampened domestic demand, according to the Penang Jewellers Association. Josson Khor, an advisor to the association, said that foreign demand, coupled with strong prices, will push Malaysian gold jewelry exports this year beyond the $2.17 billion recorded in 2024. He noted that about 80% of Malaysian gold jewelry exports come from manufacturers and exporters based in Penang. Khor added, "There is stable demand from overseas markets for Malaysian gold jewelry, as the cost of local craftsmen remains competitive, despite the shortage of this specialized labor." It is worth noting that gold prices remain up more than 26% since the beginning of 2025, despite having retreated slightly from their record peak of $3,431 per ounce last month. According to data from the Malaysia External Trade Development Corporation, domestic gold jewelry exports reached $780 million (RM3.3 billion) during the period from January to April 2025, compared to approximately $6.6 million (RM2.8 billion) during the same period last year. The UAE recorded the highest purchase volume, importing jewelry worth $260 million (RM1.12 billion), a 7.4% increase, while Singapore increased its imports by nearly 16% to $240 million (RM1 billion). Conversely, domestic demand has suffered a significant decline due to high prices, with average retail gold jewelry sales halving from around 10 kg per month, according to Khor. The Penang Jewellers Association has approximately 650 members, more than 60% of whom are small and medium-sized enterprises (SMEs) with an annual turnover of less than RM25 million. Khor warned that continued high gold prices could lead to a further contraction in domestic retail sales, predicting they will fall to around 4 kg per month by 2027. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks News Shell Unveils Cost-Cutting, LNG Growth Plan Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
See - Sada Elbalad
17 hours ago
- See - Sada Elbalad
Gold Prices Steady Locally Amid Anticipation of U.S. Inflation Data and U.S.-China Trade Talks
Waleed Farouk Gold prices in the local market remained relatively stable during Tuesday's trading session, coinciding with a slight increase in global spot prices, as markets closely monitor upcoming U.S. inflation data and developments in trade negotiations between the United States and China. The price of 21-karat gold held steady at EGP 4,670 per gram, showing little change from Monday's closing, while the global ounce price rose by $12 to reach $3,339. The 24-karat gold was recorded at EGP 5,337 per gram, while 18-karat gold stood at EGP 4,003. The 14-karat gold price reached EGP 3,114 per gram, and the gold pound was priced at EGP 37,360. Gold prices in local markets had increased by EGP 10 during Monday's trading, as the 21-karat gram opened at EGP 4,660, climbed to a peak of EGP 4,780, and closed at EGP 4,670. Globally, the ounce rose by $17, opening at $3,310 and ending the session at $3,327. Monday's trading witnessed notable volatility, with the 21-karat gram jumping from EGP 4,660 to EGP 4,780 before retreating to EGP 4,670. The global ounce saw an upward move from $3,310 to $3,327, marking a $17 increase. These limited price movements come amid heightened anticipation ahead of the U.S. Consumer Price Index (CPI) report, scheduled for release on Wednesday. The CPI is one of the key indicators used by the Federal Reserve to guide its monetary policy, with the next Fed meeting set for June 17–18. Higher-than-expected inflation could reduce the likelihood of interest rate cuts, putting pressure on gold prices. Conversely, a weaker CPI reading may support gold as a hedge against potential monetary easing. Analysts expect the Federal Reserve to keep interest rates unchanged at its upcoming meeting. However, current economic indicators suggest a potential 50 basis point rate cut by the end of the year. Meanwhile, the report highlighted that U.S.-China trade talks are continuing for a second day in London, in an effort to ease tensions that began with reciprocal tariffs and have since expanded to include restrictions on rare earth exports. The two countries had imposed tariffs on each other in April, before agreeing to a temporary truce in May, which helped calm global market concerns. Expectations indicate that these negotiations may have a direct impact on gold and dollar movements in the coming days, as investors evaluate the prospects of reaching agreements that could improve the investment climate and ease inflationary pressures. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks News Shell Unveils Cost-Cutting, LNG Growth Plan Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
Egypt Today
18 hours ago
- Egypt Today
Banking sector sees local liquidity climbing in April: CBE
Cairo – June 10, 2025: Egypt's banking sector continued to witness growth in April 2025, with total local liquidity climbing to LE 12.684 trillion, according to the latest figures from the Central Bank of Egypt (CBE). This marks an increase from LE 12.566 trillion recorded in March. The CBE's report shows mixed performance across key monetary components. The money supply declined slightly, reaching LE 3.170 trillion in April, compared to LE 3.209 trillion in the previous month. Similarly, cash in circulation outside the banking sector edged down to LE 1.292 trillion from LE 1.296 trillion. Non-governmental deposits in local currency rose to LE 8.270 trillion, up from LE 8.195 trillion in March. While demand deposits decreased to LE 1.878 trillion (from LE 1.912 trillion), time deposits and savings certificates increased notably to LE 6.392 trillion, up from LE 6.283 trillion. Sector-specific data shows that households held the lion's share of local currency time deposits and savings certificates, totaling LE 6.012 trillion. The private sector followed with LE 302.683 billion, and public business sector holdings stood at LE 77.193 billion. For demand deposits, the private sector led with LE 1.021 trillion, followed by households at LE 745.9 billion, and the public business sector at LE 111.065 billion. Foreign currency deposits also saw a rise, with non-governmental holdings increasing to the equivalent of LE 3.121 trillion, up from LE 3.074 trillion in March. Of this, demand deposits amounted to LE 766.662 billion, while time deposits and savings certificates reached LE 2.354 trillion. In terms of foreign currency distribution, households again dominated time deposits and savings certificates with approximately LE 1.668 trillion. The private sector held LE 538.134 billion, while public business sector deposits stood at LE 148.218 billion. Demand deposits were similarly concentrated in the private sector (LE 507.175 billion), followed by households (LE 209.864 billion) and the public business sector (LE 49.981 billion). On the external side, the net foreign assets of Egypt's banking system declined slightly to $13.5 billion (LE 687.723 billion), compared to $15.05 billion (LE 760.839 billion) in March. Total foreign assets increased to LE 3.963 trillion, up from LE 3.894 trillion, though this was offset by a rise in total foreign liabilities to LE 3.275 trillion from LE 3.133 trillion.
