Egypt, July 14th 2025,

Inflation surprises on the downside ; CBE keeps rates unchanged. Coming issuance program published. Old Rental Law amended

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We also aim to bring reflections on certain topics and subjects, close to recent events, which we think are worth stopping on .

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Egypt awards six new exploration blocks in the Mediterranean sea, North Sinai and Nile delta.

Inflation surprises on the downside ; CBE keeps rates unchanged. Coming issuance program published. Old Rental Law amended .

First,

Most will agree that the United Nations are in need of serious reforms and changes if it has to achieve any purposes in the future. Luckily , China is part of the UN Security Council otherwise its four other members would not even represent 10 % of the world’s population. Two members have used their vetoes countless times since its creation to block whatever resolutions that didn’t serve their interests or those of their clients. Small is beautiful ? Not sure the G7 is a beautiful club but at least there is a certain homogeneity among its members and shared goals, principles ( until now). Can’t exactly say the same about the new BRICS. Although it is laudable for them to have a voice and be heard, they are a very disparate group : many different shades of democratic regimes to monarchies and outright totalitarian regimes. With a desire to oppose the actual “order”. Not much else. The language adopted is sometime a bit ironic : they published a communique condemning Ukraine’s attack on Russian infrastructure but not a word on Moscow’s daily launches of hundreds of drones and missiles on Ukrainian cities. True , potential drone attacks on several Russian airports caused the cancellations and delays of hundreds of flights last weekend and disrupted the holiday plans of hard working people and visitors. Good enough to justify the communique !

Egypt,

Two big news this week !

The first one is the release of inflation numbers and they came out better than expected. The monthly urban headline CPI inflation came out at -0.1 % in June compared to +1.6 % in June 2024 and +1.9 % in May 2025. On an annual basis, inflation came out at 14.9 % in June 2025 from 16.8 % in May. The consensus according to Reuters was 16.2 %.

Monthly core inflation, as computed by the CBE, recorded a -0.2 % decrease in June ( +1.3 % in June 2024 and +1.6 % in May 2025) and on an annual basis 11.4 % in June from 13.1 % in May.

Source : CBE

The two biggest components had different trajectories : food and beverages declined more than expected by 1.8 % m/m ( F&B is 33 % of the basket ) while housing related costs surged by 6.5 % ( 19 % of the basket) .