Egypt’s annual inflation rate showed little improvement in January, with consumer prices in urban areas rising by 24%, only slightly lower than December’s 24.1%, according to recent data. Despite the marginal slowdown, monthly inflation surged to 1.5% from 0.2% in the previous month, signaling ongoing price pressures in the economy.
The Central Bank of Egypt has maintained its benchmark interest rate at 27.25% since March 2023, as it continues to grapple with soaring inflation. The bank’s monetary policy committee is set to meet on February 20, with analysts closely watching for potential rate adjustments to curb inflationary trends.
Food and beverage prices, which account for the largest share of Egypt’s inflation basket, climbed 20.8% year-on-year in January, up from 20.3% in December. This persistent rise in food costs has been a key driver of inflation, exacerbating the financial strain on households.
