Egypt inflation falls to 12.2% in June, but central bank holds rates at 19%

Egypt’s annual headline inflation rate decelerated to 12.2% in June, marking the third consecutive month of easing.

Despite the downward trend, the Central Bank of Egypt maintained its policy rate at 19%, signaling that policymakers remain cautious about declaring the disinflationary trend durable.

The decision to hold rates reflects persistent underlying price pressures.

While headline figures improved, core inflation—stripping out volatile food and energy components—remained elevated.

Additionally, the Egyptian pound continued to face headwinds, trading near the psychological threshold of EGP 50 per US dollar.

These factors suggest that the central bank prioritizes anchoring inflation expectations over immediate monetary easing.