Central Bank of Egypt Reports Decline in Inflation Rates
The latest data released by the Central Bank of Egypt indicates a reduction in core inflation to 22.6% year-on-year in January, down from 23.2% in December. This trend aligns with findings from a recent survey conducted among analysts and economists from Egyptian investment firms and banks, which suggested a continuation of the downward trajectory in inflation, projecting a 1.5% decrease on a year-over-year basis.
Survey participants attributed this ongoing decrease to the stability of the exchange rate and the effect of last year’s high comparison base. They noted that inflation rates for January of the prior year had reached 29.8%, making the current decline significant. Furthermore, the easing of geopolitical tensions in the region is perceived to have a positive impact on the broader economic climate in Egypt.
Additionally, inflation in urban areas of Egypt slowed to 24% in January, compared to 24.1% in December, according to figures from the Central Agency for Public Mobilization and Statistics.
The moderation in the inflation rate is supported by a reduction in prices of key commodities, with vegetable prices falling by 2.6% and fish and seafood prices decreasing by 0.3%.
Overview of Inflation Rates
| Metrics | January | December | Year-on-Year Change |
|---|---|---|---|
| Core Inflation Percentage | 22.6% | 23.2% | Decrease of 0.6% |
| Urban Inflation Percentage | 24.0% | 24.1% | Decrease of 0.1% |
| Vegetable Price Change | -2.6% | – | – |
| Fish and Seafood Price Change | -0.3% | – | – |
As these trends indicate, the economic outlook for Egypt appears to be stabilizing, with a potential for continued improvement in inflation metrics in the near future.
