Egypt’s inflation rate is projected to have decreased to 24.2% in December, driven by a slowdown in food price increases, according to a recent poll.
The anticipated decline follows a significant peak of 38% in September 2023, with inflation rates increasing in August, September, and October before dropping in November.
Analysts attribute the expected easing of inflation to stable or lower vegetable and fruit prices, largely due to seasonal factors.
Heba Monir of HC Securities predicts a year-on-year inflation rate of 24.1% and a month-on-month rate of 0.2% for December.
Egypt’s inflation has been influenced by rapid growth in the money supply, with M2 money supply expanding by 29.06% in the year leading up to November.
The country has secured an $8 billion financial support package from the International Monetary Fund (IMF) to help address its budget deficit and adopt a less inflationary monetary policy.
However, the package requires the government to reduce subsidies on certain domestic items, potentially driving up their prices.
The Central Agency for Public Mobilization and Statistics (CAPMAS) is set to release the official inflation figures on Thursday morning.
