Price Drop Leads to Decrease in Consumer Inflation Rate in Egypt
In a significant development, Egypt’s urban consumer price inflation rate slowed to 33.1 percent in March from 36 percent in February, driven by a drop in the price of cereals, bread, and vegetables.
Central Bank’s Measures and Market Forces Impact Prices
The country’s Central Agency for Public Mobilization and Statistics released data showing a 10 percent month-on-month price increase in March, down from 11.4 percent in the previous period. This comes after the central bank’s decision to hike interest rates by 600 basis points and allow the exchange rate to be determined by market forces.
Price Movements Across Different Categories
While prices of cereals, bread, and vegetables decreased, categories like meat and poultry, as well as fish and seafood, saw price increases compared to the previous month.
Production Index Declines in Certain Industries
CAPMAS reported a decline of 5.45 percent in the monthly production index of manufacturing and extractive industries in January, with some sectors experiencing drops in production values.
IMF Approval for Financial Support Program
Egypt received approval from the International Monetary Fund for an expanded $8 billion financial support program, focusing on economic stabilization through policy corrections and liberalization measures.