Egypt's annual urban inflation jumps to 35.7% in February

A customer uses an automated teller machine (ATM) operated by Banque Misr Egypt in the Al Obour district of Cairo, Egypt, on 7 March, 2024 [Islam Safwat/Bloomberg via Getty Images]

Egypt’s annual urban consumer price inflation jumped to 35.7% in February from 29.8% in January, driven mainly by a rise in food and beverage prices, data from statistics agency CAPMAS showed on Sunday, Reuters reports.

The increase in inflation comes well before a surge expected to result from last week’s devaluation of the currency. The central bank on Wednesday allowed the Egyptian pound to fall to about 50 to the dollar from 30.85, where it had been fixed for the past 12 months.

A poll of 14 analysts had expected February inflation to slow to a median 25.1%. Before February, Egypt’s inflation rate had been falling from a historic high of 38.0% in September.

Month-on-month, prices rose by 11.4% in February, up from just 1.6% in January. Food prices leapt by 15.9%, up from 1.4% in January.

“The sharp rise in the annual reading was fuelled by a surge in monthly inflation of both food (F&B) and non-food items and was in spite of the favourable base year contribution of -5.5%,” Allen Sandeep of Naeem Brokerage said in a note.

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