The statistics agency pointed to a sharp decline in the costs of food and beverages, the largest single component of the inflation basket, which slid by 47.9%
Egypt’s annual urban consumer price inflation (CPI) fell to 29.8% in January, dropping from 33.7% in December, according to the Central Agency for Public Mobilization and Statistics on Thursday.
This marks the 4th consecutive month in which inflation continues to slow after reaching a peak in May 2023.
Monthly urban inflation was 1.6% compared to 1.4% in December.
The statistics agency pointed to a sharp decline in the costs of food and beverages, the largest single component of the inflation basket, which slid by 47.9%.
According to Bloomberg, the annual urban inflation rate’s decline was partly due to its favorable comparison with the much higher consumer-price index a year before. “And while inflation has substantially cooled from a record 38% in mid-2023, its future trajectory depends on Egypt’s troubled currency, with another weakening likely fueling a new surge in costs,” it wrote.
Egypt's headline inflation fell to 31.2% in January from 35.2% in the previous month, after reaching a historic high of 38% in September.
President Abdel Fattah El Sisi raised the minimum wage for state workers by 50% yesterday, enabling the lowest-paid employees to earn a monthly salary of EGP 6,000 starting in March. Some economists have stated that the increase could be a move to support the most vulnerable Egyptians for the upcoming devaluation.
Inflation may also pick up in February as Ramadan season rolls in, which usually comes with increased consumer demand, particularly on food and beverages, as Egyptians stockpile goods ahead of the holy month.
