The annual inflation rate for urban consumers in Egypt rose to 32.7% in March from 31.9% in February, according to data released on Monday by the country’s statistics office.
From 6.5% in February and 4.7% in January, urban inflation decreased to 2.7% per month in March.
Egypt’s inflation rate has escalated following a series of currency devaluations beginning in March 2022, a prolonged shortage of foreign currency, and persistent delays in importing products.
Egypt’s currency has depreciated by fifty percent since March 2022, when economic vulnerabilities caused by Russia’s invasion of Ukraine became apparent. The International Monetary Fund provided a $3 billion financial rescue package to the country in December.
The monthly inflation rate declined, but still ranked among the highest on record.
According to a report by Naeem Brokerage, the impact of currency depreciation, particularly on the informal market, and the consequence of a basic material shortage prompted the increase.
The median of 13 experts surveyed in March projected that annual urban consumer inflation would reach 33.6%.
Egypt experienced its highest inflation rate ever in July 2017, at 32.952%, eight months after halving the value of its currency as part of a prior $12 billion IMF rescue package.
The core inflation rate, which excludes petroleum and certain volatile food items, decreased to 39.5% from a record high of 40.26% in February, according to central bank data released on Monday. In the middle of their forecasts, analysts anticipated an increase to 42.25 percent.
