Egypt Inflation Slows Down to 23.4% in December

AFRICAN BUSINESS AND ECONOMYJanuary 10, 2025 at 12:13 PM UTC

TLDR

Egypt’s annual headline inflation slowed to 23.4% in December, down from 25% in November
The deceleration comes despite significant year-on-year price increases across key sectors
Healthcare prices saw a steep 35% annual increase, while housing, water, electricity, natural gas, and fuel rose 22.5%

Egypt’s annual headline inflation slowed to 23.4% in December, down from 25% in November, according to CAPMAS. The deceleration comes despite significant year-on-year price increases across key sectors, particularly food and beverages, which rose 19.2%.

Notable contributors to inflation included a 19.8% rise in meat and poultry prices and a 4.4% increase in vegetables. The alcoholic beverages and tobacco segment recorded a 29.1% year-on-year jump, while the restaurants and hotels segment surged 28.2%.

Healthcare prices saw a steep 35% annual increase, while housing, water, electricity, natural gas, and fuel rose 22.5%. The education sector remained relatively stable with a 12.3% rise. On a monthly basis, inflation held steady, with the consumer price index (CPI) unchanged at 239.7 points in December, following a 0.1% rise in November.

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Key Takeaways

While Egypt’s inflation showed signs of easing in December, high costs across essential sectors underscore ongoing economic challenges. Food and beverage price hikes, driven by meat, poultry, and vegetables, reflect vulnerabilities in domestic supply chains. The unchanged monthly inflation rate suggests stabilization efforts may be taking effect, but the elevated CPI level indicates sustained consumer strain. Addressing inflation across essential goods and services will remain critical for policymakers as they work to balance economic recovery and affordability.

Egypt

Economy

Inflation

Consumer Prices

CAPMAS

Interest Rate