Consumer Price Inflation in Egyptian Cities Declines to 33.3 Percent in March

A recent report from Egypt’s statistics agency, CAPMAS, revealed that the annual urban consumer price inflation rate dipped to 33.3 percent in March, surprising many as it was lower than anticipated. This marked a decrease from February’s 35.7 percent.

In March, there was a 1 percent increase in prices compared to February’s significant 11.4 percent rise month-on-month.

According to a recent survey of 12 analysts, annual inflation was anticipated to increase to a median of 36.3 percent. This rise was attributed to price adjustments following a currency devaluation, an interest rate hike in early March, and a subsequent increase in fuel prices two weeks later.

The central bank on 6 March allowed the Egyptian pound to fall to about 50 to the dollar from 30.85, where it had been fixed for the past 12 months. It has since strengthened to 47.60 per dollar.

The government raised prices on a wide range of fuel products on 22 March as it pressed ahead with a commitment made to the International Monetary Fund more than a year earlier to allow most domestic prices to rise to international levels.

Inflation has been elevated for the past year, driven largely by rapid growth in the money supply. Annual inflation reached a historic high of 38 percent in September.

Food prices edged up by a monthly 0.7 percent in March after having jumped by 15.9 percent in February.

On an annual basis, food prices rose by 45 percent in the year to March.

(Reuters)