CAIRO – Egypt’s annual urban consumer price inflation climbed to 13.9% in April, up slightly from 13.6% in March, in line with market expectations, according to the national statistics agency CAPMAS.
The slight rise in inflation was mainly driven by an increase in official fuel prices, analysts noted. Month-on-month, prices rose by 1.5%, though food and beverage prices saw a rare monthly drop of 1.5%. Still, they were up 6.0% compared to the same period last year.
Inflation in Egypt has remained a major concern since Russia’s invasion of Ukraine in early 2022. The conflict disrupted global supply chains, triggered investor withdrawals from Egyptian treasuries, and sent inflation skyrocketing to a record 38% in September 2023.
In response, the Egyptian government took a series of tough economic measures. These included devaluing the Egyptian pound, hiking interest rates by 600 basis points, and securing an $8 billion financial aid package from the International Monetary Fund in March 2024.
Meanwhile, Egypt’s M2 money supply — a key indicator of the money in circulation — expanded by 25.8% in the year to end-March. However, this growth slowed from the all-time high of 33.9% recorded in February, according to the Central Bank.
While the current inflation rate is far lower than last year’s peak, economic challenges persist. Analysts suggest continued vigilance is needed to keep prices in check and maintain macroeconomic stability.