Egypt’s annual urban inflation soars to record 35.7% :CAPMAS

CAIRO - 10 July 2023: The annual urban consumer price inflation in Egypt increased to 35.7 percent in June, recording an all-time high, according to the Central Agency for Public Mobilization and Statistics (CAPMAS)’s data released on Monday.

The annual urban consumer inflation rate increased from 32.7 percent which was recorded in May this year. This rise was fueled largely by a 64.9 percent increase in food and beverage costs, a 58.9 percent increase in the cereals and bread group, and a 92.1 percent increase in the meat and pourtly group.

A Reuters poll had predicted that June’s inflation rate in Egypt will likely jump to record levels with the start of an unfavorable baseline effect and increased demand during Eid Al-Adha’s holiday.

Egypt devalued its currency by almost half since March 2022 following the economic repercussions of the Russia-Ukraine crisis.

Despite these challenges, Egypt's economy has been showing signs of resilience, with GDP growth expected to be around 5.5 percent in 2023, up from 2.9 percent in 2020.

The Egyptian cabinet introduced economic reforms to help the country attract more foreign investment and create jobs. These include its IPO program and the state’s efforts to step out of certain fields and increase the private sector's involvement in the economy.