April’s annual inflation rate marks the slowest pace since October, easing pressure on the central bank ahead of policy meetings.
Egypt’s annual inflation rate declined to 14.9% in April, down from 15.7% in March, marking the lowest level in six months. The slowdown reflects easing price pressures on food and energy, though core inflation remains elevated at 12.3% year-on-year.
The April print follows a peak of 38% in September 2023, driven by currency devaluations and subsidy cuts. Analysts had expected a modest dip to 15.2%, making the actual figure slightly better than consensus. Month-on-month inflation rose 1.1%, driven by seasonal factors.
Markets are watching for potential interest rate cuts, though the central bank has signaled caution amid ongoing fiscal reforms and IMF program commitments.