Muthomi Ireri
Egypt’s urban inflation rate fell for the fourth consecutive month in June, decreasing to 27.5% from 28.1% in May, as reported by the country’s statistics agency on Wednesday. This decline is part of a trend that began in September 2023 when inflation peaked at 38%. This peak followed the government’s implementation of an inflation targeting model and a flexible exchange rate policy.
Core inflation, which excludes volatile items such as fuel and certain food products, also saw a reduction, dropping to 26.6% year-on-year from 27.1% in May, according to the central bank. Economists have noted that while Egypt has attempted to increase local food production, these efforts have not been entirely successful, leaving the economy vulnerable to external influences.
In June, food and beverage prices rose by 30.8% year-on-year and 3% month-on-month, driven largely by a significant 300% increase in subsidized bread prices that began on June 1. However, this spike in bread prices had a limited impact on the overall inflation index, as bread constitutes only about 1% of the food basket. This was offset by lower prices for other food items and a positive base effect.
Dj Vnyash
Silverio Omari
