Egypt: Inflation forecast to have climbed further in May

A Reuters poll of analysts has found that Egypt’s annual headline inflation is forecast to have increased further in May.

State statistics agency, CAPMAS, is expected to release the latest figures on Wednesday – six days earlier than usual.

This is due to the 3-day Muslim holiday, Eid al-Adha, which gets underway at sunset on Thursday.

The median forecast of the 12 analysts suggests annual urban consumer inflation will have risen to 14.9% in May, up from 13.9% in April.

This is primarily due to an unfavourable base effect, with some residual impact from energy price hikes in mid-April.

The increase on a range of fuel products by up to almost 15% was in line with commitments sought by the International Monetary Fund.

Annual inflation  has plunged from a record high of 38% in September 2023, helped by an $8 billion financial support package signed with the IMF in March 2024.