Egypt inflation hits highest level since May amid Iran war-driven energy price hike

Egypt's annual urban inflation accelerated to 15.2% in March, the highest level since May 2025, as higher energy costs and a weaker local currency added to price pressures, according to official data released Thursday.

Data from Egypt's state statistics agency CAPMAS showed annual consumer-price growth in urban areas rose from 13.4% in February.

On a monthly basis, urban inflation increased 3.2% in March, up from 2.8% in the previous month.

The latest increase came as Egypt faced spillover effects from the Iran war, which pushed up global energy prices and weighed on the Egyptian pound.

The local currency traded at around 53.3 against the US dollar on Thursday, compared with 47.9 before the conflict began.

Egypt, which relies heavily on imports, has also faced higher energy import costs and pressure on foreign portfolio flows, complicating efforts to lower inflation after consumer prices surged during the country's economic crisis in 2023.

In March, authorities raised fuel prices and public transport fares, while electricity tariffs for higher-consuming households and the commercial sector were also increased.

Food and beverage prices, the largest component of the inflation basket, rose 5.8% year-on-year in March. The Ramadan period, which ran from mid-February to mid-March this year, also contributed to stronger seasonal demand.