Egypt’s Inflation Rate Plummets to 12.8% in February

Egypt’s annual inflation rate fell to 12.8% in February from 24% in January, driven by previous price increases losing influence. Monthly consumer prices rose by 1.4%, marking the fourth slowdown in seven months. Factors included an 8.2% drop in vegetable prices and stable energy costs.

In February, Egypt’s annual urban consumer price inflation significantly declined to 12.8%, down from 24% in January, as reported by the Central Agency for Public Mobilization and Statistics. This substantial decrease is attributed to the base effect, meaning that previously high price increases no longer impact the current inflation rate.

On a month-to-month basis, there was a consumer price increase of 1.4% in February, slightly lower than the 1.5% rise recorded in January. Notably, this represents the fourth instance of inflation slowing within the last seven months following a sustained increase that began in August 2023.

The inflation experienced last year largely resulted from rising fuel costs, increased public transportation fares, and a dramatic 300% increase in the price of subsidized bread, which marked the first rise in over three decades. The observed decline in February was mainly due to an 8.2% reduction in vegetable prices, largely offsetting inflationary pressures, while the costs of water, electricity, and gas remained stable among various other factors.

In summary, Egypt’s inflation rate has significantly decreased from 24% in January to 12.8% in February, primarily due to the base effect and a notable drop in vegetable prices. This trend reflects a critical slowdown in inflation following previous surges, with contributing factors including stabilized utility costs and recent price hikes in essential goods that are now stabilizing.

Original Source: anba.com.br