The Event
In April 2024, Egypt's headline inflation eased to 32.54% from 33.34% in March, driven by a decrease in core inflation, hinting at structural inflation improvements. Yet, compared to April 2023 (30.60%), inflation remains 1.94 percentage points higher, signalling ongoing inflation risks.
Unsurprisingly, Egypt’s monthly inflation rate also increased to 1.06% from 0.95% in March 2024, driven by a surge in prices of regulated items like cosmetics, clothing and footwear, and food and vegetables.
Rising energy expenses played a significant role in inflationary pressures. Egypt raised prices of energy-related items, such as petrol, diesel, and octane, on March 22, aligning with IMF requirements for a $820 million support fund. Diesel prices climbed to E£10 per litre from E£8.25 per litre, amplifying transport costs and inflationary pressures. Furthermore, the exchange rate pass-through effect on commodity prices contributed to the monthly inflation uptick, with the currency depreciating 1.33% between March and April after
