Egypt’s annual urban inflation rate dropped to 25.5% in November 2024, down from 26.5% in October, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). The monthly inflation rate also eased to 0.5%, with food prices seeing a notable decline of 1.9% compared to the previous month.
Core CPI inflation, calculated by the Central Bank of Egypt (CBE), also slowed, recording 0.4% in November compared to 1.3% in October. On an annual basis, core CPI inflation fell to 23.7% in November, down from 24.4% in October.
CAPMAS attributed the overall decline to price reductions in several key categories. Grains and bread prices fell by 0.3%, meat and poultry prices dropped by 3%, fruits by 0.4%, and vegetables saw a significant 12.4% decrease. Organized tourism trips also saw a 0.2% drop. However, some categories experienced price hikes, including oils and fats (up 2%), mineral and sparkling water and natural juices (up 2.4%), tobacco (up 7.1%), and electricity, gas, and other fuels (up 3.1%). Cultural and recreational services surged by 13.3%, and personal transportation costs increased by 6.9%.
The Central Bank of Egypt held its monetary policy stance steady during its meeting on November 21, maintaining the overnight deposit rate at 27.25%, the overnight lending rate at 28.25%, and the main operation and discount rates at 27.75%. This marked the fifth consecutive meeting without any changes to interest rates.
In its statement, the CBE noted that global factors, such as geopolitical tensions, the potential rise of protectionist policies, and supply chain disruptions, were influencing inflation. Despite these challenges, the bank expects inflation to stabilize through the end of 2024, with a significant reduction anticipated in early 2025 due to the cumulative effects of monetary tightening and favorable base year effects.
CAPMAS also highlighted improvements in Egypt’s inflation outlook, with food inflation reaching its lowest rate in two years at 27.3%. A slight decline in core inflation in October, alongside slower monthly inflation rates, signals progress in easing price pressures despite ongoing fiscal challenges.
The Central Bank affirmed its commitment to data-driven monetary policy and its readiness to take necessary actions to maintain price stability and achieve long-term inflation targets.
