RIYADH: Egypt’s annual inflation rate slowed to 13 percent in May from 13.4 percent in the previous month, extending a gradual easing in price pressures as authorities push ahead with economic reforms and tighter monetary policy.
Data released by the Central Agency for Public Mobilization and Statistics, or CAPMAS, showed the consumer price index rose 1.4 percent month on month to 292 points in May.
The moderation comes as Egypt’s economic outlook improves following a series of reforms backed by an $8 billion International Monetary Fund support package agreed in March 2024.
Egypt’s economic outlook is improving, with the Central Bank of Egypt forecasting growth of 4.3 percent to 4.5 percent in the current fiscal year and average annual inflation of around 12 percent.
“The food and beverages sector recorded an increase of 2.1 percent due to a rise in the prices of the cereals and bread group by 0.3 percent, the meat and poultry group by 3.5 percent, and the fish and seafood group by 1.3 percent, as well as the oils and fats group by 0.5 percent, and the fruit group by 12.7 percent,” CAPMAS said.
It added: “This occurred despite a decrease in the prices of the dairy, cheese and eggs group by 1.8 percent.”
The data showed that prices in the alcoholic beverages and tobacco category rose 0.2 percent in May, while clothing and footwear increased 1.4 percent. Housing, water, electricity, gas and fuel costs climbed 2 percent, while furniture, household equipment and routine maintenance expenses rose 1.2 percent.
Healthcare prices increased 0.2 percent and transportation costs edged up 0.1 percent. Telecommunications prices rose 9.7 percent, while recreation and culture costs increased 0.2 percent. Restaurant and hotel prices were up 1.1 percent, and miscellaneous goods and services rose 0.8 percent.
The easing inflation trend comes as rating agencies point to improving macroeconomic conditions. In April, S&P Global affirmed Egypt’s sovereign credit ratings at “B/B” with a stable outlook, citing progress in economic reforms and stronger external buffers.
The ratings agency said the affirmation reflected a balance between Egypt’s reform progress over the past two years, improving external buffers and medium-term growth prospects, despite risks stemming from prolonged regional geopolitical tensions.
