Egypt’s annual urban consumer price inflation has decreased to 12.8% in February from 24% in January, largely due to the diminishing influence of past high price increases. Month-to-month, consumer prices rose by 1.4%, a slight decrease from the previous month. Key contributing factors include a notable decline in vegetable prices and stable costs for utilities.
In February, Egypt’s annual urban consumer price inflation plummeted to 12.8%, a significant reduction from 24% in January. This decline, reported by the Central Agency for Public Mobilization and Statistics, is attributed to the base effect, where previous high price increases have diminished impact on the current inflation rate.
Consumer prices experienced a modest month-to-month increase of 1.4% in February, down from a 1.5% rise in January. This marked the fourth occasion in the last seven months that inflation has experienced a slowdown, following a period of persistent acceleration that commenced in August 2023.
The inflationary pressures observed last year were chiefly caused by increasing fuel costs, elevated public transportation fares, and a drastic 300% increment in subsidized bread prices in May, the first such increase in over three decades. Additionally, the February inflation slowdown has been significantly influenced by an 8.2% decline in vegetable prices, while expenses for water, electricity, and gas remained consistent among other stabilizing factors.
The notable decrease in Egypt’s inflation rate in February underscores a shifting economic landscape, influenced by prior high price increases and specific market adjustments. Continued monitoring of consumer prices and external inflation factors will be essential for future economic strategies, especially in addressing the repercussions of previous sharp price hikes.
Original Source: anba.com.br
