Egypt’s annual urban consumer price inflation has slowed down to 12% in August, down from 13.9% in July, according to data released by the Central Agency for Public Mobilization and Statistics (CAPMAS).
This rate is lower than the median forecast of 12.7% predicted by 13 analysts polled by Reuters.
The decline in inflation is part of a two-year downward trend, driven by the government’s tightened monetary policy.
A significant factor contributing to this decrease is the $8 billion financial support package signed with the International Monetary Fund in March 2024, which helped reduce annual inflation from a record 38% in September 2023.
As a result of the slowing inflation, the Central Bank of Egypt cut its overnight lending rate by 200 basis points on August 28, marking the third reduction this year.
