Inflation has been fuelled largely by an expansion of the money supply.

Egypt's annual urban consumer price inflation rate dropped more than expected to 25.5 percent in November, its lowest since December 2022, data from statistics agency CAPMAS showed on Tuesday.

Inflation began climbing precipitously in early 2022 following the Russian invasion of Ukraine, which prompted foreign investors to withdraw billions of dollars from Egyptian treasury markets.

Headline inflation climbed to a record high of 38 percent in September 2023. By October 2024 it had fallen to 26.5 percent.

The median forecast of 15 analysts in a poll had been for annual inflation to inch down to 26.4 percent last month.

On a monthly basis, headline inflation rose by 0.5 percent in November, down from 1.1 percent in October, CAPMAS data showed.

Food prices dropped by 2.8 percent on the month compared with 1.1 percent in October to stand 23.3 percent higher than they were a year earlier.

Inflation has been fuelled largely by an expansion of the money supply. Egypt's M2 money supply grew by 29.54 percent year-on-year in October, central bank data showed.