(MENAFN- Daily News Egypt) Egypt's annual urban inflation rate eased to 25.5% in November 2024, down from 26.5% in October, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). The monthly inflation rate registered a modest 0.5%, driven by a 1.9% drop in food prices compared to the previous month.
Core CPI inflation, calculated by the Central bank of Egypt, also reflected a slowing trend, recording 0.4% in November compared to 1.3% in October. On an annual basis, core CPI inflation fell to 23.7% in November, down from 24.4% in October.
CAPMAS attributed the overall decline to price reductions in several categories. Grains and bread saw a 0.3% drop, meat and poultry prices fell by 3%, fruits by 0.4%, vegetables by 12.4%, and organized tourism trips by 0.2%. At the same time, other categories experienced price increases. Oils and fats rose by 2%, mineral and sparkling water and natural juices by 2.4%, tobacco by 7.1%, and electricity, gas, and other fuels by 3.1%. Cultural and recreational services saw a notable rise of 13.3%, while personal transportation costs increased by 6.9%.
The Central Bank of Egypt maintained its policy stance during its November 21 meeting, holding the overnight deposit rate at 27.25%, the overnight lending rate at 28.25%, and the main operation and discount rates at 27.75%. This marked the fifth consecutive meeting without changes to interest rates.
In its statement, the bank highlighted global factors influencing inflation, including heightened geopolitical tensions, the potential resurgence of protectionist policies, and supply chain disruptions. Despite these risks, the bank expects inflation to stabilize through the end of 2024, with a significant drop anticipated in early 2025 due to cumulative monetary tightening measures and favorable base year effects.
CAPMAS also noted that Egypt's overall inflation outlook has improved, with food inflation reaching its lowest rate in two years at 27.3%. Additionally, a slight decline in core inflation in October, alongside slower monthly inflation rates, signals progress in curbing price pressures despite fiscal challenges.
The Central Bank reiterated its data-driven approach to monetary policy, closely monitoring inflation trends and broader economic developments. It affirmed its readiness to take necessary actions to maintain price stability and achieve its long-term inflation targets.
MENAFN12122024000153011029ID1108984906
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.