Egypt’s urban inflation rate falls to 26% in July, exceeding the forecast decline

Posted on August 14, 2024   |  

In July, prices in Egypt decreased by 0.4% compared to June’s 1.6% drop. Food prices fell by 0.3% in July but were still 28.5% higher than a year ago.

Analysts expected inflation to slow to a median of 26.6% in July, continuing a trend of decline since September when it peaked at 38.0%.

Egypt has tightened its monetary policy with an $8 billion IMF support package from March, leading to higher domestic prices and a weaker currency.

The central bank raised interest rates by 600 basis points on March 6, totaling 800 basis points in rate hikes for 2024.

To address a budget deficit of 505 billion Egyptian pounds ($10.27 billion) in a 3.016 trillion pound budget for the year ending June 30, the government increased the prices of some subsidized products.

Despite these measures, inflation is increasing at a slower pace than earlier in the year.