Egypt’s annual urban consumer price inflation rose to 16.8% in May from 13.9% in April, data from the state statistics agency CAPMAS showed on Wednesday.
CAPMAS released the inflation figures six days earlier than usual due to the upcoming Eid al-Adha holiday.
Inflation has fallen from a record high of 38% in September 2023, supported by an $8 billion financial aid package agreed with the IMF in March 2024. Core inflation, which excludes volatile items like fuel and some food, increased to 13.1% year on year in May from 10.4% in April, according to the central bank.
The decline in inflation prompted the Central Bank of Egypt to cut its overnight lending rate by 225 basis points to 26.0% in April, and by another 100 basis points in May.
