Egypt Inflation Rate

The annual urban inflation rate in Egypt slowed to 32.5% in April 2024 from 33.3% in the previous month, remaining significantly above the upper limit of the central bank’s range of 5-9%. Still, it was the lowest reading since January, mainly influenced by a slowdown in prices for food (40.5% vs 45% in March), furnishings, household equipment & routine maintenance of the house (31.1% 31.3%), recreation & culture (44.5% vs 44.8%), and restaurants & hotels (38.6% vs 39.7%). Meanwhile, costs increased at a faster pace for alcoholic beverages & tobacco (95.6% vs 93.4%), clothing & footwear (25.7% vs 20.5%), housing utilities (10.2% vs 9.7%), and transport (23.6% vs 16.2%). On a monthly basis, consumer prices rose 1.1% in April, edging higher from a 1% increase in the prior month.

The annual urban inflation rate in Egypt slowed to 33.3% in March 2024, from a four-month high of 35.7% in the previous month and missing market forecasts of 36.3%. Downward pressure mainly came from food (45% vs 50.9% in February), transport (16.2% vs 17.6%) add housing (9.7% vs 10%). Meanwhile, Cairo metro ticket prices saw an increase of up to 20%, while internet service fees surged by as much as 33%, and electricity tariffs rose by up to 26%. However, to mitigate the impact of these price hikes and address the pressing cost of living crisis, the government also introduced a substantial 50% raise in the minimum wage, setting it at 6,000 Egyptian pounds, effective from March. On a monthly basis, consumer prices rose 1% in March, sharply decelerating from 11.4% in the prior month.

The annual urban inflation rate in Egypt accelerated for the first time in five months to 35.7% in February 2024 from January's 12-month low of 29.8% and far above forecasts of 25.1%. It was the highest inflation rate since last October, with food prices soaring by 50.9%, transport (17.6%) and housing by 10% after the government increased Cairo metro ticket prices by up to 20% in January, internet services (33%), and electricity prices (26%). The government also announced a 50% hike to the minimum wage to 6,000 pounds to take effect in March, with salaries to be raised by a minimum of 1,000 to 1,200 Egyptian pounds to address the cost of living crisis. Last Tuesday, Egypt's central bank raised interest rates by 600 bps, following a 200 bps hike in February, to accelerate the monetary tightening process to fast-track the disinflation path and ensure a decline in underlying inflation. Monthly, CPI surged by 11.4% in February, the highest on record, jumping from a 1.6% rise in January.