Core inflation in Egypt eases to 26.6 percent YoY in June


(MENAFN) Egypt's central bank announced on Wednesday that the country's annual core inflation rate decreased to 26.6 percent year-on-year in June, down from 27.1 percent in May. According to a statement from the Central Bank of Egypt, the monthly change in the core consumer price index, which it compiles, was 1.3 percent in June 2024. This compares to 1.7 percent in June of the previous year and a negative 0.8 percent in May 2024.

Data released by Egypt's Central Agency for Public Mobilization and Statistics aligned with these figures, indicating that annual urban consumer price inflation also declined to 27.5 percent in June from 28.1 percent in May, consistent with market expectations.

Inflation in Egypt has shown a gradual decline over the past four months, continuing a trend of moderation. Analysts anticipate further easing in inflation over the coming year, despite risks associated with potential price hikes in fuel, medicines, fertilizers, and natural gas.

Egypt implemented austerity measures in March, which were tied to an USD8 billion financial support package from the International Monetary Fund (IMF), aimed at improving fiscal management. These measures included a currency devaluation following over two years of persistent foreign exchange shortages. Egyptian officials have emphasized reducing inflation as a top priority in their economic strategy.

On Tuesday, the IMF announced it had scheduled a new meeting with Egypt to discuss the third review of its extended loan program, highlighting ongoing international support and cooperation in Egypt's economic reform efforts. 

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