(MENAFN) In Egypt, inflationary pressures are anticipated to ease for the fourth consecutive month in June, according to poll, continuing a trend that analysts predict will persist throughout the remainder of the year. The upcoming inflation data will reflect the impact of a significant 300 percent hike in subsidized bread prices implemented on June 1. Despite this substantial increase, analysts foresee its influence on the consumer price index (CPI) as relatively modest, especially considering the weighting of bread in overall food expenditures and the general slowdown in other food prices.

Analysts expect Egypt's annual urban consumer price inflation to decline to 27.5 percent in June from 28.1 percent in May. This reduction marks a continuation of the downward trajectory from a peak of 38 percent recorded in September, which had briefly spiked again to 35.7 percent in February.

Goldman Sachs has highlighted the potential for favorable base effects and subdued inflation in other food categories to contribute to a monthly inflation rate around 2 percent. This outlook aligns with the broader expectation among analysts that inflationary pressures in Egypt will diminish in the coming months.

While the majority of analysts anticipate a slowdown in inflation, some, such as Barclays, hold a contrasting view, predicting a slight acceleration. Barclays forecasts Egyptian urban inflation to reach 32.3 percent, reflecting differing assessments of economic conditions and pricing dynamics.

The anticipated moderation in inflation in Egypt comes amidst ongoing efforts to stabilize economic conditions and manage price pressures, reflecting both domestic policy adjustments and broader economic trends impacting the region.  

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