Egypt’s annual inflation edges up to 13.9% in April, in line with forecasts

Egypt’s annual urban consumer inflation rate inched up to 13.9% in April, slightly above March’s 13.6%, aligning with market expectations, according to data released Saturday by the country’s statistics agency, CAPMAS.

On a monthly basis, consumer prices rose 1.5% between March and April. Food and beverage prices, a key component, declined 1.5% over the month, though they still showed a 6.0% increase compared to the previous year.

Analysts polled by Reuters had forecast the annual inflation rate to hit 13.9%, attributing the rise largely to a government hike in official fuel prices.

Inflation had surged after Russia’s full-scale invasion of Ukraine in early 2022, triggering a mass exit of foreign capital from Egyptian treasury markets. This culminated in headline inflation peaking at a record 38.0% in September 2023.

Meanwhile, Egypt’s M2 money supply—an indicator of liquidity—grew 25.8% in the year through March, cooling from February’s record 33.9%, central bank data showed.

To regain economic stability, Egypt devalued its currency, lifted interest rates by 600 basis points, and secured an $8 billion loan package from the International Monetary Fund in March 2024.