The annual urban consumer enlargement rate in Egypt increased to 13.9 % in April, which is slightly more than 13.6 % in March, and is in line with the market expectations, according to the data issued on Saturday by the country’s statistical agency, Capmas.
On a monthly basis, consumer prices increased by 1.5 % between March and April. Food and beverage prices, a major component, decreased by 1.5 % during the month, although they still show an increase of 6.0 % compared to the previous year.
Analysts of Reuters expected that the annual inflation rate would reach 13.9 %, which is largely due to a governmental increase in official fuel prices.
Inflation increased after Russia’s invasion of Ukraine in early 2022, which led to a collective departure from foreign capital from the Egyptian treasury market. This inflation was crowned at its peak in a 38.0 % record in September 2023.
Meanwhile, the central bank data showed that the M2 show in Egypt – an indicator of liquidity – has reached 25.8 % in the year to March, as it cools from a record of 33.9 % in February.
To restore economic stability, Egypt reduced the value of its currency, raised interest rates by 600 basis points, and got a $ 8 billion loan package from the International Monetary Fund in March 2024.
