Egypt’s annual core inflation falls to 26.6% in June – CBE

Egypt’s central bank (CBE) reported that annual core inflation fell to 26.6 per cent in June, the lowest since December 2022. Monthly core inflation also dropped to 1.3 per cent in June from 1.7 per cent in the same month last year.

The CBE reported that annual urban headline inflation for June 2024 has reached 27.5 per cent, marking the fourth consecutive month of decline from a peak of 28.1 per cent in May, as per Central Agency for Public Mobilisation and Statistics (CAPMAS).

In June 2024, inflation was driven by food items and, to a lesser extent, non-food items, benefiting from the favourable base effect of high inflation in 2023.

Food inflation rose to 31.9 per cent from 31.0 per cent in May 2024, driven by higher core food prices and a 300 per cent price hike in subsidised bread. On the other hand, non-food inflation fell to 24.5 per cent in June from 26.2 per cent in May.

Monthly urban headline inflation in June 2024 recorded 1.6 per cent, down from 2.1 per cent in June 2023 and -0.7 per cent in May 2024.

The increase was driven by core food prices rebounding after two months of negative inflation. Non-food inflation also slowed slightly.

Annual rural headline inflation remained stable at 26.6 per cent in June, and annual nationwide inflation dipped to 27.1 per cent from 27.4 per cent in May.

Attribution: CBE report