Egypt inflation eases in June amid economic reforms
Date
7/10/2024 5:46:08 AM
(MENAFN) Egypt's urban consumer price inflation rate dropped to 27.5 percent in June from 28.1 percent in May, aligning with expectations as reported by the state statistics agency CAPMAS. This decrease marks a continuation of the inflation slowdown observed over the past four months, following a peak of 38 percent in September and a subsequent rise to 35.7 percent in February.
Analysts had anticipated this gradual easing of inflation, foreseeing further moderation in the coming year despite potential risks associated with anticipated price hikes in fuel, medicines, fertilizers, and natural gas. Notably, food and beverage prices saw a notable annual increase of 30.8 percent in June, reflecting ongoing cost pressures in essential consumer goods.
On a monthly basis, the food and beverages sector reported a 3.0 percent increase, driven particularly by a 13.5 percent rise in the prices of grains and bread. This rise coincides with the implementation of a 300 percent price hike for subsidized bread starting June 1, contributing to the overall inflationary trends observed.
Egypt's recent economic reforms, tied to an USD8 billion financial support package from the International Monetary Fund (IMF), have aimed to stabilize the country's fiscal health. These measures included currency devaluation in response to prolonged foreign exchange shortages spanning over two years. Government officials have underscored their commitment to prioritizing inflation reduction as a key economic objective amidst these reforms.
The IMF, which has been closely monitoring Egypt's progress under its loan program, recently rescheduled a meeting to review the country's performance in implementing economic reforms. This ongoing collaboration highlights international efforts to support Egypt's economic stabilization and growth prospects amid evolving global economic conditions and domestic challenges.
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