Egypt’s Inflation Rate Witnesses Significant Decrease in February

Egypt’s annual urban consumer price inflation fell to 12.8% in February from 24% in January, according to the Central Agency for Public Mobilization and Statistics. This decline is attributed to past price spikes no longer affecting current rates. February saw a consumer price increase of 1.4%. The decrease in inflation is largely due to an 8.2% drop in vegetable prices, while fuel costs and public transportation fares still exert pressure on the economy.

In February, Egypt experienced a significant decrease in annual urban consumer price inflation, which fell to 12.8% from January’s 24%. This finding was reported by the Central Agency for Public Mobilization and Statistics, confirming a notable shift in inflation dynamics. The decline is primarily attributed to the base effect, as the previous two years of exceptionally high price spikes no longer impact the current inflation figures.

On a monthly basis, consumer prices climbed by 1.4% in February, a slight reduction from the 1.5% increase observed in January. This marks the fourth instance of inflation slowing in the past seven months, following a period of increasing inflation rates that started in August 2023.

The inflation in recent times has been primarily driven by escalating fuel costs, increased public transportation fares, and a threefold increase in subsidized bread prices in May, signifying the first such rise in over three decades. The decrease in inflation rates in February was largely due to an 8.2% reduction in vegetable prices, along with stable costs for water, electricity, and gas, among other contributing factors.

The recent decline in Egypt’s annual inflation rate to 12.8% signals a shift in economic conditions, influenced by previous high price levels no longer affecting current statistics. Monthly inflation remains low, supported by reductions in specific essential goods, especially in the vegetable sector, while larger inflationary pressures from fuel and public services continue to be pivotal elements influencing inflation trends.

Original Source: anba.com.br