Egypt’s Inflation Slows Down Faster Than Expected, Reaching 28.1% in May
In a surprising turn of events, Egypt’s annual urban consumer price inflation dropped to 28.1 percent in May, down from 32.5 percent in April, according to data from the statistics agency CAPMAS. Analysts had predicted a slower decrease to a median of 30.4 percent, but the trend has been steadily declining since September when inflation peaked at 38.0 percent.
Food Prices Rise by 31.0% in May Compared to 2023
Despite the overall decrease in inflation, food prices in May were still 31.0 percent higher than they were in May 2023. This marks the third consecutive month of declines since a sudden surge in prices back in February. In May, prices fell by 0.7 percent month-on-month, with food prices dropping by 3.0 percent.
Economic Growth Predicted to Reach 2.9% to 3% in Current Financial Year
Egypt’s Planning Minister Hala al-Saeed forecasts the country’s economy to grow by 2.9 percent to 3 percent by the end of June, before accelerating to 4.2 percent in 2024/25. The growth is expected to come from various sources including investment spending, net exports, imports, and consumer spending.
IMF Approves $820 Million Disbursement to Egypt
On June 6, the IMF reached a staff-level agreement with Egypt on the third review of an expanded IMF loan program. This agreement will lead to a disbursement of about $820 million to Cairo upon board approval. The IMF commended Egypt’s efforts to restore macroeconomic stability, despite challenges such as regional conflicts and disruptions in the Suez Canal.