The decline in commodity prices contributed to lowering the average annual inflation rate to 28.5%.

Prices of non-food commodities also rose to 27.6% year-on-year, along with a sharp acceleration in communication service prices, which increased by 26.2% year-on-year.

Inflation expectations remain positive at the beginning of 2025, paving the way for the Central Bank of Egypt to start a monetary easing cycle. Inflation is expected to drop below 23%, which will reflect in a reduction of interest rates.

Risks remain linked to global geopolitical and economic uncertainty, which are major challenges affecting inflation expectations and monetary easing plans.