Annual headline inflation dips to 27.1% in June, annual core inflation falls to lowest level since 2022

Cairo – July 16, 2024: Egypt’s annual headline inflation declined to 27.1 percent in June from 27.4 percent in May, the central bank explained, with core CPI registering 221.08 last month compared to 174.57 recorded in June 2023.

In its monthly inflation note, the Central Bank of Egypt (CBE) reported that Egypt’s annual core inflation decelerated slightly to 26.6 percent in June 2024 from 27.1 percent in May, marking its lowest level since December 2022.

Citing data released by the national statistics agency, the CBE noted a similar decline in monthly core inflation, which stood at 1.3 percent last month, down from 1.7 percent a year earlier.

Urban headline inflation continued its downward trajectory for the fourth consecutive month, registering 27.5 percent in June, compared to 28.1 percent in May.

The monthly urban headline inflation rate recorded 1.6 percent, bouncing back from a negative 0.7 percent in May, but lower than June 2023’s 2.1 percent.

This increase was primarily driven by core food prices, which had seen negative inflation rates in previous months, offsetting a slight deceleration in non-food inflation.

Annual food inflation saw a modest uptick, climbing to 31.9 percent in June from 31.0 percent in May, mainly attributed to higher prices in core food items and the impact of government-mandated subsidy adjustments, including a significant 300 percent price hike in subsidized bread implemented on May 29.

Fresh fruit prices decreased by 4.4 percent, while fresh vegetable prices increased by 1.7 percent.

Poultry prices rose by 8.3 percent, with unsubsidized bread climbing by 8.1 percent and dairy products posting a 0.4 percent increase.

Market sugar continued its decline for the second consecutive month, dropping by 1.9 percent.

Regulated items, including subsidized bread and medical products, witnessed significant price increases last month climbing 3.3 percent, collectively contributing 0.64 percentage points to monthly headline inflation.

Annual non-food inflation eased to 24.5 percent from 26.2 percent in the previous month.

Retail items saw a 1.8 percent increase in prices, driven by higher costs in medical products, clothing, footwear, and personal care items.

Rural headline inflation remained steady at 26.6 percent, mirroring the national average, which saw a slight decrease from 27.4 percent in May 2024 to 27.1 percent in June 2024.