Egypt’s annual urban consumer price inflation dropped slightly to 24% in January, down from 24.1% in December, according to data from the statistics agency CAPMAS. However, this remains above the 23% median forecast by analysts polled by Reuters.
Despite the slight dip, prices across various sectors continued to rise. Food and beverage prices increased by 20.2% year-on-year, transport costs surged by 33.6%, and entertainment expenses soared by 48%. On a monthly basis, inflation rose by 1.6% in January, up from 0% in December, driven by a 2.1% increase in food and beverages and a 4.6% rise in healthcare services.
Egypt has struggled with inflationary pressures since early 2022, following the Russian invasion of Ukraine, which led to a significant outflow of foreign investment from the country’s treasury markets. Inflation peaked at a record high of 38% in September 2023 before gradually declining.
Analysts attribute the persistent price hikes partly to rapid money supply growth, with M2 money supply expanding by a record 31.07% in 2024, according to the central bank.
