Egypt annual inflation slows to 14.9% as monthly price growth decelerates

Egypt's annual inflation rate slowed slightly to 14.9% in April from 15.2% in March, according to data from the Central Agency for Public Mobilization and Statistics (CAPMAS).

Despite rising fuel costs and a weakened currency due to the war in Iran, monthly inflation decelerated to 1.1% from 3.2%, suggesting a potential easing of monetary policy.

Prices for food and beverages, which constitute the largest share of the inflation basket, increased by 6.7% year-over-year in April, up from 5.8% in March.

The inflation rate had previously peaked at 38% in September 2023 but declined after Egypt's $8 billion support package with the International Monetary Fund was signed in March 2024.

However, inflation might accelerate again in May due to rising natural gas prices announced on May 3rd, which will affect energy-intensive industries.

The ongoing conflict in the region has led to substantial outflows of foreign investment, depreciation of the Egyptian pound, and higher energy costs due to the closure of the Strait of Hormuz.