Egypt's inflation drops in June amid ongoing economic reforms

Posted on July 18, 2024   |  

Egypt's urban consumer inflation rate fell to 27.5% in June from 28.1% in May, marking four months of easing inflation since its peak of 38% in September and 35.7% in February.

Food and beverage prices rose by 3% in June, with a 13.5% increase in grains and bread prices due to a 300% hike in subsidized bread prices starting June 1.

The significant rise in bread prices has contributed to the overall inflation trend.

Egypt's economic reforms are supported by a USD8 billion package from the International Monetary Fund (IMF) to stabilize the economy.

These reforms include currency devaluation to tackle a long-standing foreign exchange shortage over the past two years.

The reforms aim to improve Egypt's fiscal health amid ongoing economic challenges.