January sees Egypt's inflation Fall to 23.0% due to base effect

Inflation in Egypt drop to 23.0% in January, aided by a favourable base effect, as indicated by a poll published on Thursday.

The median estimate from 17 analysts suggested that annual urban consumer inflation would decrease from 24.1% in December to 23.0%.

The survey was conducted between February 3 and 6.

According to Heba Monir of HC Securities, urban inflation is projected to drop to 22.8% year-on-year in January, aided by the base year effect and the consistent prices of food and pharmaceuticals, despite the ups and downs in building material prices.

After increasing in August, September, and October, inflation fell in November and December and remains far below the peak of 38% recorded in September 2023.

Inflation fell in November and December after rising in August, September, and October.

It remains significantly lower than the record high of 38% reached in September 2023.

The surge in prices has been partly driven by a rapid increase in the money supply, with M2 money supply growing by a record 31.07% in 2024, according to central bank data.

The government statistics agency CAPMAS is set to release the inflation figures on Monday morning.

Six analysts forecast that core inflation will decline in January to 21.8%, down from 23.2% in December.