Egypt’s annual urban consumer price inflation rose to 13.9% in April, up from 13.6% in March, in line with analysts’ expectations, data from the country’s statistics agency CAPMAS revealed on Saturday.
On a monthly basis, prices increased by 1.5% at the end of April compared to March. The rise in food and beverage prices slowed by 1.5%, although food and beverage costs were up 6.0% year-on-year.
Analysts had forecasted an annual inflation rate of 13.9%, attributing the increase to a rise in the official price of fuel.
The inflation spike began after Russia’s full-scale invasion of Ukraine in early 2022, which led to the withdrawal of billions of dollars by foreign investors from Egyptian treasuries. Inflation peaked at a record 38.0% in September 2023.
Meanwhile, the M2 money supply grew at a slower pace, expanding by 25.8% year-on-year to the end of March, down from a record high of 33.9% at the end of February, according to central bank data.
In response to the financial crisis, Egypt devalued its currency, raised interest rates by 600 basis points, and secured an $8 billion support package from the International Monetary Fund (IMF) in March 2024. These measures helped stabilize the country’s financial situation.
