Egypt’s inflation hits lowest rate since ’23

The decision to unify the exchange rate in March 2024, along with bold monetary policy decisions, have significantly curbed inflation rates in the Egyptian market, a senior source at the Central Bank of Egypt (CBE) told Amwal Al Ghad English on Monday.

Consequently, inflation dramatically slowed to 27.5 per cent in June 2024, the lowest rate since February 2023.

The source forecasts a notable decrease in inflation rates during the first half of 2025 due to the cumulative effect of monetary tightening policy and a favourable impact of the base period.

The source also revealed a massive growth in foreign exchange inflows to the local market, recording an increase of about 200 per cent, including more than a 100 per cent rise in remittances from Egyptian expatriates compared to pre-rate liberalisation levels.

This significant growth in foreign exchange inflows has pushed the Central Bank’s net foreign reserves to an all-time high of $46.38 billion in June 2024, an increase of $13.26 billion since August 2022.

The current reserve levels can cover approximately 7.9 months of the country’s commodity import value, far exceeding internationally-recognised safe levels.

Attribution: Amwal Al Ghad English