Cairo – May 14, 2024: Goldman Sachs has revised its prediction for Egypt’s inflation rate for 2024, expecting inflation to climb by 2 percent on an annual basis to 22 percent.
According to a research note seen by the Arab World News Agency (AWP), The revised forecast, up from its previous projection of 20 percent, was attributed to an unexpected rise in inflation in February.
The firm also highlighted the gradual reduction of supply chain bottlenecks, the narrowed gap between the official and black-market exchange rates, and tighter monetary policy stabilizing inflation expectations.
Last week, the Central Agency for Public Mobilization and Statistics (CAPMAS) revealed that headline inflation slowed to 32.8 percent in April, down from 33.1 percent in March.
CAPMAS attributed the decline to a drop in prices of bread and cereals by 3.7 percent, poultry and meat by 1.8 percent, oils and fats by 2.5 percent, and other food items by 5.7 percent.
Prices of food and beverages climbed by 40.5 percent year-on-year in March, with prices of clothing and shoes increasing by 25.7 percent.
Annual inflation hit a record high in February of 36 percent before declining in March.
Goldman Sachs expects that Egypt will experience further price reductions in 2025 due to favorable effects of the base period, as well as constrained demand pressures against the backdrop of ongoing monetary policy and the government’s tightening of fiscal policy in coming months.
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