Egypt’s annual inflation fell to 12.8% in February from 24% in January. This decline is attributed to the base effect and a drop in vegetable prices. Monthly prices increased slightly by 1.4%, marking a trend of decreasing inflation that started in August 2023, following significant previous price hikes.
Egypt’s annual urban consumer price inflation experienced a significant decline, dropping to 12.8% in February from 24% in January, as reported by the Central Agency for Public Mobilization and Statistics. This notable decrease can be attributed to the base effect, given that the previous high price surges over the last two years are no longer impacting inflation rates.
In comparison to previous months, consumer prices rose by 1.4% in February, which indicates a modest decline from January’s 1.5% increase. This reduction highlights that inflation has slowed on four occasions within the last seven months, following a period of rising inflation that commenced in August 2023.
The inflationary pressures observed last year were largely fueled by increasing fuel costs, elevated public transportation fees, and a remarkable 300% increase in subsidized bread prices, which occurred for the first time in over three decades. The decline in inflation in February was primarily influenced by an 8.2% decrease in vegetable prices, while expenses for essential utilities like water, electricity, and gas remained stable, among other stabilizing factors.
In summary, Egypt’s inflation rate has significantly decreased from January to February, primarily driven by the base effect and a reduction in vegetable prices. This trend marks an improvement in the economic landscape, moving away from the earlier inflationary pressures attributed to soaring fuel and food prices. The stability in utility costs further contributes to this positive shift in inflation dynamics.
Original Source: anba.com.br
