Egypt’s annual urban consumer inflation rate in March increased to 32.7% year-over-year from 31.9% in February, according to data released by the country’s statistics agency CAPMAS on Monday.
In March, urban inflation slowed from 6.5% in February and 4.7% in January to 2.7% on a monthly basis.
The escalating inflation rate in Egypt is the result of a series of currency devaluations beginning in March 2022. While, A protracted shortage of foreign currency, and ongoing importation delays.
Egypt, which secured a $3 billion financial support package from the International Monetary Fund in December. While, Country devalued its currency by 50 percent since March 2022, after the economic vulnerabilities exposed by Russia’s invasion of Ukraine.
Moreover, Although inflation slowed from month to month, it remained among the highest readings on record.
In a note, Naeem Brokerage attributed the increase to a rise in food prices due to Ramadan-related high seasonal demand. The impact of currency devaluation, particularly in the informal market, and the impact of a raw material shortage.
Moreover, According to the median estimate of 13 analysts surveyed, annual urban consumer inflation rose to 33.6% in March.
Egypt’s highest inflation rate ever reached 32.952% in July 2017. It is eight months after the country devalued its currency by half as part of a previous $12 billion IMF support programme.
The core inflation rate, which excludes petroleum and some volatile food items, returned to 39.5% on Monday. It is after reaching a record 40.26% in February, according to data released by the central bank. The median of analyst projections anticipated an increase to 42.25 percent.
