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Inflation quickens in March on higher food prices
In its first acceleration rate since October, Egypt’s annual headline inflation – total inflation within an economy, including volatile commodities like food and energy prices — increased to 13.6% in March up from 12.8% in February, according to data from the Central Agency for Public Mobilization and Statistics. |
On an annual basis, food and beverage prices climbed 6.6% in March, up from 3.7% in February.
The decline goes against the median projection of a recent Reuters poll, which had forecasted a drop to 12.6%
With real interest rates around 15%, Egypt’s inflation-adjusted rates are among the highest in the world, Bloomberg notes.
Month-on- Month
On a monthly basis, prices rose 1.6% in March, up from 1.4% in February, driven by a 3.5% uptick in food and beverage prices.
Main reasons are due to the increase in prices of:
Fruits – 23.6%.
Vegetables – 3.1%.
Meat and poultry – 2.8%.
Fish and seafood – 0.7%.
Grains and bread – 0.5%.
Dairy products – 0.3%.
Mineral water, soft drinks, and natural juices – 0.3%.
Oils and fats – 0.2%.
Sugar – 0.2%.
Coffee, tea, and cocoa – 0.2%. Going forward
Fitch projected in a recent rating report that inflation in Egypt will reach 12.5% by the end of FY 2025, and 10.6% at the end of FY26.
The Central Bank of Egypt (CBE) is targeting a 7% (±2 percentage points) inflation rate for the fourth quarter of 2026.
Are interest rate cuts on the horizon?
The significant gap between March’s inflation and the CBE benchmark interest rate of 27.25% could provide the central bank with the opportunity to begin a monetary easing cycle at its policy meeting on April 17, as many economists had anticipated before the data was released, Bloomberg notes. |
QNBE reports profit uptick in Q1
Egypt’s second-largest private lender “Qatar National Bank” (QNBE) announced a 1.57% increase in its net profits for the first quarter of 2025, reaching EGP 7.18 billion, according to its latest earnings release. |
QNBE saw a 13.59% YoY increase in net interest income – amounting to over EGP 11.2 billion — during Q1.
Net interest, fee and commission income also rose to over EGP 12.92 billion up from 11.12 billion in the same period of 2024.
Earnings per share reached EGP 2.90, compared to EGP 2.86 in the same period last year.
More details
QNBE saw a 6.90% increase in customer deposits during the first quarter of 2025, totaling approximately EGP 727 billion by the end of March, driven by growth across all areas of activity.
The bank’s total consolidated assets amounted to approximately EGP 859 billion, reflecting a 4.80% increase compared to December 2024.
Comes after a strong 2024
The lender saw its profits leap 63% YoY in 2024 to reach EGP 26.39 billion. Its board of directors distributed a cash dividend of EGP 1.5 per share based on the previous year’s profits.
2024 awards include:
Best SME Bank in Egypt – by both The Capital Finance International Magazine and The Global Banking and Finance. Best Retail Bank in Egypt – by The Capital Finance International Magazine and The Global Banking and Finance. Best Customer Experience Bank – Egypt – The International Finance Magazine. |
What else is clapping?
- The General Assembly of Arabian Food Industries Company (Domty) has approved distribution of EGP 240.21 million to stockholders, with a cash dividend of 0.85 EGP per share to be disbursed in May.
This comes after the company approved a decision to split the company into two entities following reports it plans to exclude its bakery unit from its planned sale to Denmark’s Arla Foods.
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