Urban Consumer Price Index in Egypt hits record high of 35.7% in June

23 days ago
Urban Consumer Price Index in Egypt hits record high of 35.7% in June

In June, Egypt saw a notable increase in its annual urban consumer price inflation, which reached a record 35.7 percent year-on-year, up from 32.7 percent in May, according to data released by the country’s statistics agency CAPMAS on Monday.

According to a recent Reuters poll, analysts had foreseen that the country’s headline inflation rate would reach a record high. This spike was anticipated due to an unfavorable base effect and a surge in demand during the Eid Al-Adha holiday period.

Egypt’s currency has been devalued by nearly 50% since March 2022, following the repercussions of Russia’s invasion of Ukraine, which have laid bare the country’s economic weaknesses.

In December, the International Monetary Fund (IMF) approved a $3-billion Extended Fund Facility loan for Egypt to be disbursed over 46 months.

However, the first review of the programme has been delayed amid uncertainty over Egypt’s pledge to move to a flexible exchange rate.

The previous headline inflation record of 32.952 percent was reached in July 2017, eight months after Egypt devalued its currency by half as part of a previous $12 billion IMF support package.

(Reuters)


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