Egypt’s Urban Inflation Slows Sharply to 14.9% in June
DUBAI: Egypt’s annual urban consumer inflation dropped to 14.9 percent in June, down from 16.8 percent in May, according to new figures released by the country’s official statistics agency, CAPMAS.
The easing of inflation was more significant than expected. A Reuters poll of 15 analysts had predicted June’s rate to come in at around 16.2 percent.
One of the main drivers behind the decline was a drop in food and beverage prices, which fell by 1.2 percent compared to the previous month. However, year-on-year, food and drink costs were still 6.9 percent higher than in June 2024.
On a month-to-month basis, inflation dipped slightly by 0.1 percent. Meat and poultry prices saw the biggest decrease, falling 3.8 percent. Fruit prices dropped by 2.1 percent, and vegetables were down 1 percent. In contrast, bread and cereal prices inched up by 0.3 percent, and seafood prices rose by 0.8 percent.
The latest figures show a continued downward trend from a peak of 38 percent recorded in September 2023. That record high was followed by significant efforts to stabilize the economy, including an $8 billion financial support package agreed with the International Monetary Fund in March 2024.
The new data is seen as a positive sign for Egypt’s economy, which has been under pressure in recent years from global shocks and domestic fiscal challenges.
