Hassan Abdullah, Governor of the Central Bank of Egypt, stated that Egypt is implementing an AI-supported system to monitor the Consumer Price Index, which tracks inflation daily by collecting and analyzing price data.

He added in his speech at the 9th session of the Euro-Mediterranean Central Banks Conference hosted by Egypt that the country has developed advanced models to measure the size of the informal economy.

The Central Bank of Egypt’s forecasts showed a continued decline in the inflation rate in Egypt during 2025, with an average ranging between 14% and 15% until the end of the year.

According to the Central Bank, the annual general inflation rate fell to 13.9% in July 2025 compared to 14.9% in June 2025, while core inflation remained stable at 11.6% in July 2025 compared to 11.4% in June 2025.

Fitch Ratings agency predicted a gradual decline in Egypt’s inflation rate over the next two fiscal years, reaching 10.5% by the end of fiscal year 2025/2026, supported by exchange rate stability and improved inflation expectations.

The Central Bank of Egypt decided to cut interest rates on deposits and lending by 1% on Thursday, in the sixth meeting of the Monetary Policy Committee in 2025, bringing rates to 21.00% for deposits and 22.00% for lending. It also decided to reduce the credit and discount rate by 100 basis points to 21.50%.

Previous meetings saw interest rate cuts three times totaling 5.25%, with rates held steady in February and July meetings.

This decision coincides with a decline in core inflation — as calculated by the Central Bank — to 10.7% in August 2025 compared to 11.6% in July 2025, and a year-on-year decline in urban general inflation to 12% in August 2025 compared to 13.9% in July 2025.