Headline inflation increased across the board, driven by higher prices of food and non-alcoholic beverages
Egypt’s annual headline inflation continues to rise, climbing to 26.5% from 21.6% in December and January 2022’s 8%, revealed the latest data from the Central Agency for Public Mobilization and Statistics (CAPMAS).
Annual urban consumer price inflation (CPI) surged to a higher-than-expected 25.8% in January, from 21.3% in December.
This marks the highest rating CAPMAS has given in almost five years.
Headline inflation increased across the board, driven by higher prices of food and non-alcoholic beverages.
Food and beverages were up 48.1%, restaurant and hotel prices climbed by 42.8%, while culture and entertainment commodities jumped by 30.6%.
Rising inflation numbers followed a series of currency devaluations starting in March 2022 pushed by the Russia/Ukrainian conflict, leading to inflation jumping and staying in double digits, a prolonged shortage of foreign currency, and delayed imports into the country due to regulations aimed at protecting the country’s foreign reserves.
The Egyptian pound has fallen by nearly 50% since March.
Egypt is gearing up for a difficult Ramadan season as the local market suffers from surging prices, which are expected to continue over the coming few months.
These numbers will increase pressure on the CBE’s Monetary Policy Committee to further up interest raise when it meets on March 30th. During its first meeting of 2023, the Monetary Policy Committee maintained key interest rates, pointing towards uncertainty in changes in international commodity prices.
