Egypt’s inflation slows for the third month to 33.7%

Reuters

Egypt’s annual inflation eased for the third consecutive month in December, closing 2023 at 35.2 percent, according to the Central Agency for Public Mobilization and Statistics (Capmas).

The inflation rate was 36.4 percent in November and 38.5 percent in October.

Likewise, the urban consumer price inflation fell to 33.7 percent in December from 34.6 percent in November.

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Prices, however, climbed 1.4 percent month on month in December, driven by an annual increase of 60.5 percent in food and beverage, a 73.7 percent rise in meat and poultry and an 83.3 percent surge in vegetables.

The government stats showed that food prices rose by 2.1 percent month-on-month in December.

Restaurant and hotel prices rose by an annual rate of 42.5 percent, followed by furniture and home appliances (+38.1 percent) and goods and services (+26.6 percent).

Starting in 2024, the government has announced several price hikes in landline broadband packages, mobile tariffs, electricity, metro tickets, and building materials.

Inflation has fallen from the highs of 38 percent in September 2023, but analysts expect inflation to shoot up in case the government allows its currency to depreciate.