Egypt's inflation rate eases to 33% in March

Posted on April 15, 2024   |  

Egypt's annual urban consumer price inflation rate decelerated to 33.3% in March, marking a decrease from 35.7% recorded in February.

In March, there was a 1.0% month-on-month increase in prices, a notable decline from the 11.4% surge observed in February.

Analysts had predicted annual inflation to rise to a median of 36.3%, citing currency devaluation, an interest rate hike in early March, and subsequent fuel price hikes as contributing factors.

On March 6, the central bank permitted the Egyptian pound to depreciate to around 50 against the dollar, after maintaining a fixed rate of 30.85 for the past year. The currency has since appreciated to 47.60 per dollar.

The government's decision to raise fuel prices on March 22 aligns with its commitment to the International Monetary Fund to adjust domestic prices to international levels.

Inflation has remained elevated due to rapid growth in the money supply, reaching a peak of 38.0% in September. 

Food prices rose by 0.7% monthly in March, following a significant 15.9% increase in February, with an annual rise of 45% by March.