Egypt’s Inflation Expected to Slow in January as Food Prices Fall. Cairo, Egypt — Egypt’s headline inflation is anticipated to decelerate to 11. 7% in January, down from 12.
3% in December, according to a poll of analysts by Reuters.
The decline is attributed to a decrease in food and transport prices, which have been major contributors to the country’s economic challenges in recent years.
The Central Bank of Egypt has responded to the slowing inflation by cutting its overnight lending rate by 100 basis points in December.
This move follows a $8 billion financial support package signed with the International Monetary Fund (IMF) in March 2024, which has played a significant role in stabilizing the Egyptian economy. Annual inflation has been on a downward trend since it reached a record high of 38% in September 2023.
The IMF’s latest projections, released in October, anticipate that Egypt’s inflation rate will fall sharply to 11.
8 percent in the current fiscal year 2025/2026, which ends on June 30, 2026, from an average of 20. 4 percent in the previous fiscal year.
However, some analysts are concerned that the increased money supply could lead to a surge in prices.
Egypt has faced economic setbacks due to high inflation, debt, and currency shortages, and has had to rely on support from wealthy Gulf countries and the IMF.
According to the State Statistics Agency, annual urban consumer price inflation dropped to 29. 8% in January, which was better than the expected 32.
5% according to a Reuters poll.
Core inflation, which excludes fuel and some volatile food items, also showed a decrease from 34. 2% in December to 29.
0% in January.
Further details are expected as the situation remains under observation.
*Additional reporting by ImNews | Sources consulted: 4*
