- Inflation falls for third straight month to lowest level in three months
- Steep declines in fruit, vegetable, meat and poultry prices drive slowdown
CAIRO, EGYPT – Egypt’s annual inflation rate eased to 13.1% in July, down from 14.9% in June, marking the lowest level in three months and the third consecutive monthly decline, official data showed.
The Consumer Price Index fell 0.6% month-on-month, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). The agency attributed the slowdown to significant price drops in key food categories, with fruit down 11%, vegetables 7% and meat and poultry 4.9%. Overall, food and beverage prices fell 3.1% compared with June.
The declines in staples helped offset slight increases in other food items such as cereals, bread, eggs, sugar, coffee, tea and cocoa. Outside the food sector, beverages and tobacco recorded some of the sharpest monthly rises – alcoholic drinks surged 5.3% and tobacco 7.8%.
Housing costs rose 0.7%, driven by an 0.8% increase in actual rent and a 1.7% jump in housing maintenance costs.
Despite relief from food price declines, inflationary pressure persists in parts of the economy. In May, Egypt’s inflation hit a four-month high after a 15% fuel price hike in April, part of the government’s commitments under the International Monetary Fund’s $8 billion loan programme. Energy costs remain elevated.
Signs of recovery
The Central Bank of Egypt last month held its key overnight deposit rate at 24%, pausing an easing cycle that began in April with a total of 325 basis points in cuts over two months. Policymakers cited global uncertainty and volatile commodity prices for the cautious approach.
However, the July slowdown could give the bank room to resume rate cuts later in the year.
Despite years of economic challenges, Egypt’s economy has shown signs of resilience in 2024. GDP grew 4.3% in the second quarter of the 2024/25 fiscal year, up from 2.3% a year earlier. The third quarter posted 4.77% growth, the highest quarterly rate in three years, compared with 2.2% in the same period last year, according to the planning ministry.
