Egypt’s inflation rate dropped sharply to 12.8% in February from 24% in January, primarily due to the base effect and falling vegetable prices. Month-to-month consumer prices rose slightly by 1.4%. Recent inflationary trends were driven by fuels, transportation fares, and a substantial increase in bread prices.
In February, Egypt recorded a significant decline in annual urban consumer price inflation, which fell to 12.8%, down from 24% in January, as reported by the Central Agency for Public Mobilization and Statistics. This reduction is attributed to the base effect, indicating that previous high price escalations are no longer impacting the current inflation rate.
Moreover, month-to-month consumer prices rose by 1.4% in February, slightly lower than the 1.5% increase noted in January. This represents the fourth occasion in seven months where inflation has decelerated after a period of rising rates that commenced in August 2023.
The inflationary pressures observed last year primarily stemmed from increased fuel costs, elevated public transportation fares, and a significant 300% rise in the price of subsidized bread, marking the first such increase in over three decades. The decline in February was predominantly influenced by an 8.2% drop in vegetable prices, while expenses related to water, electricity, and gas remained stable, among other contributing factors.
The recent data indicates a noteworthy reduction in Egypt’s inflation rate, attributed largely to the easing of previous price hikes and specific factors such as decreased vegetable prices. As inflation continues to slow down, monitoring the underlying causes will be essential for understanding future economic conditions. The stability in utility costs also suggests a vital area of concern for consumers moving forward.
Original Source: anba.com.br
