PHOTO
This picture taken on August 1, 2023 shows a view of the exterior facade of the new headquarters of Egypt's Central Bank at the New Administrative Capital megaproject about 45 kilometres east of the current capital Cairo. (Photo by Khaled DESOUKI / AFP) Image used for illustrative purpose.
Egypt - Annual urban headline inflation continued its downward trend, registering 27.5% in June 2024, down from 28.1% in May 2024. The decline was influenced by both food and non-food items, as well as a favourable base effect stemming from strong inflationary pressures in 2023.
In June 2024, annual food inflation rose to 31.9%, compared to 31.0% in May 2024. This increase was primarily driven by higher core food prices and the impact of a 300% price hike in subsidized bread announced by the government on 29 May 2024.
However, the rise in food prices was partially offset by a decrease in annual non-food inflation, which stood at 24.5% in June 2024, down from 26.2% in May 2024.
Annual core inflation reached its lowest level since December 2022, decelerating to 26.6% in June 2024 from 27.1% in May 2024. Monthly core inflation also followed this trend, recording 1.3% in June 2024 compared to 1.7% during the corresponding month in 2023.
Monthly urban headline inflation increased by 1.6% in June 2024, rebounding from negative rates in April and May 2024. This rise was driven by core food prices, despite a slight deceleration in monthly non-food inflation.
In rural areas, annual headline inflation stabilized at 26.6% in June 2024. Nationwide, annual headline inflation declined to 27.1% in June 2024, down from 27.4% in May 2024.
Specifically, fresh fruit prices declined by 4.4%, while fresh vegetable prices increased by 1.7%, contributing to monthly headline inflation. Poultry prices rose by 8.3%, while unsubsidized bread prices increased by 8.1%.
Dairy products saw a modest 0.4% increase, while market sugar declined by 1.9% for the second consecutive month.
Regulated items, including medical products and appliances, drove a 3.3% increase in prices in June 2024. Retail items, such as clothing and footwear, contributed 1.8% to monthly headline inflation. Services, including rents and restaurant expenditures, increased by 0.6%.
The monthly core inflation can be attributed to price increases in core food items, with retail items and services also playing a role.
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