Egypt’s inflation rate dropped to 12.8% in February from 24% in January, attributed to the base effect from previous high price rises. Monthly prices rose by 1.4%, marking a decline from January’s 1.5%. Major inflation drivers included fuel price hikes and increased costs of essential goods. The decrease in vegetable prices played a significant role in the February slowdown.
In February, Egypt’s annual urban consumer price inflation significantly decreased to 12.8% from 24% in January, as reported by the Central Agency for Public Mobilization and Statistics. This drop is attributed to the base effect due to previous unusually high price increases that no longer impact the current inflation rate.
On a month-to-month basis, consumer prices rose by 1.4% in February, which is a slight decline from January’s increase of 1.5%. This slowdown in inflation represents the fourth occurrence in seven months despite a previous period of escalating rates that started in August 2023.
The inflation observed last year was primarily fueled by increased fuel prices, higher public transportation fares, and a significant 300% hike in subsidized bread prices in May, the first increase in over three decades. The decrease in February was further influenced by an 8.2% reduction in vegetable prices, alongside stable costs for water, electricity, and gas.
Egypt’s inflation has experienced a notable decline, falling from 24% in January to 12.8% in February, primarily due to the base effect. The recent month-to-month increase was moderate at 1.4%, indicating fewer inflationary pressures. Key inflation drivers from the past year included notable price hikes in fuel and essential goods, which seem to be stabilizing, contributing to the observed slowdown.
Original Source: anba.com.br
