CBE: Annual headline inflation continues to decline, down to 25.2% in July

Cairo – August 15, 2024:  According to the Central Bank of Egypt (CBE), Egypt's annual headline inflation decreased to 25.2 percent in July 2024 from 27.1 percent in June, signaling a continued decline in inflation rates and easing price pressures.

Annual core inflation also slowed to 24.4 percent in July, down from 26.6 percent in June, marking its lowest level since December 2022 and the fifth consecutive month of decline.

Additionally, the CBE noted that monthly core inflation was negative 0.5 percent in July, compared to 1.3 percent in the same month last year.

Annual rural headline inflation decreased to 24.7 percent in July from 26.6 percent in June, while annual urban headline inflation fell to 25.7 percent from 27.5 percent over the same period.

The reductions in urban and rural inflation were driven by both food and non-food items and benefited from favorable base effects from high inflation in 2023.

Food inflation declined to 29.7 percent in July from 31.9 percent in June, primarily due to a reduction in core food prices, while non-food inflation also eased to 22.9 percent from 24.5 percent in the same period.

Monthly urban headline inflation stood at 0.4 percent in July, a decrease from 1.9 percent in July 2023 and 1.6 percent in June 2024. The rise in prices for volatile food items was offset by a drop in core food prices.

Key price movements for July included a 2.2 percent increase in fresh fruit prices and an 18.9 percent rise in fresh vegetable prices, contributing 0.71 percentage points to monthly headline inflation.

In contrast, poultry prices fell by 11.2 percent, reducing inflation by 0.71 percentage points. Market rice prices dropped by 1.3 percent, contributing a negative 0.02 percentage points, while oils and fats prices declined by 0.7 percent, also contributing a negative 0.02 percentage points.

Prices for eggs and dairy products rose by 4.3 percent and 0.3 percent, respectively, contributing 0.09 percentage points to monthly headline inflation.

Fish and seafood prices increased by 0.8 percent, adding 0.02 percentage points, and other core food items like market sugar, pulses, and market tea contributed 0.04 percentage points.

Retail item prices increased by 1.0 percent, contributing 0.13 percentage points to monthly headline inflation, driven mainly by higher costs in clothing, footwear, household cleaning products, and personal care items.

Service prices rose by 0.4 percent, adding 0.10 percentage points, with increases in restaurant, cafe, and rent expenses.