(MENAFN- Daily News Egypt) Annual urban headline inflation accelerated to 12.5% in October 2025, up from 11.7% in September, according to data released by the Central Bank of Egypt (CBE).

The CBE said the acceleration was primarily driven by higher services prices, especially imputed residential rents, in addition to an uptick in volatile food prices.

Non-food inflation rose to 20.4% in October, compared with 19.1% in September, while annual food inflation edged up slightly to 1.5%, from 1.4% a month earlier.

Annual core inflation also accelerated, reaching 12.1% in October 2025 from 11.3% in September. On a monthly basis, core inflation stood at 2% in October, compared with 1.3% in the same month last year.

The CBE noted that the October increase was mainly driven by a pickup in services inflation, led by a sharp 17.5% rise in imputed rents for housing.

Monthly urban headline inflation rose to 1.8% in October 2025, compared with 1.1% in October 2024. The monthly increase was largely attributable to higher prices of fresh vegetables and services, with retail goods also contributing to a lesser extent.

In rural areas, annual headline inflation decelerated to 7.8% in October, from 8.9% in September. Nationwide, annual headline inflation remained broadly stable at 10.1%, compared with 10.3% a month earlier.

Monthly food inflation reached 1.2% in October, contributing 0.5% to monthly headline inflation.

October's food inflation was driven by:

• A 5% increase in volatile food items, adding 0.32% to monthly headline inflation. While fresh fruit prices fell by 7.6%, fresh vegetables surged by 14.7%, both in line with typical seasonal patterns.
• A 5% rise in egg prices, contributing 0.08%.

Monthly non-food inflation recorded 2.2% in October, contributing 1.38% to monthly headline inflation.

The CBE said the rise in non-food inflation was mainly due to:

• A 4.5% increase in services prices, adding 1.25% to monthly headline inflation. This was largely driven by the 17.5% rise in imputed housing rents, which alone contributed 1.18%, alongside a slight increase in restaurant and café prices.
• A 0.5% increase in retail items, contributing 0.07%, mainly due to slightly higher prices for clothing and footwear, cleaning products, and personal care items.
• A 0.2% rise in regulated prices, contributing 0.05%, reflecting a 0.5% increase in tobacco prices and a 0.6% rise in LPG cylinder prices.

Monthly core inflation stood at 2% in October 2025, reflecting the combined impact of changes in core CPI components. Services accounted for 1.74% of the monthly core inflation rate, while core food and retail items contributed 0.20% and 0.10%, respectively.

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