Egypt inflation rate slows to 13.2% in June

Egypt’s monthly inflation declines

Monthly inflation in Egypt finally fell last month, albeit slightly.

The monthly inflation rate was 13.2% in June, down 0.03% from May. This was the first decrease in the monthly inflation rate in seven months, the state-owned news outlet Al-Ahram reported Thursday.

Why it matters: Like other countries in the region, Egypt is experiencing a high degree of inflation. The price increases partly result from the Russian invasion of Ukraine, which has disrupted global supply chains worldwide. Egypt has been particularly affected by the war, as it previously imported most of its wheat from Russia and Ukraine.

The Central Bank of Egypt raised interest rates in March for the first time since 2017, and then raised rates again in May in an effort to contain inflation.

However, last month, the financial institution notably declined to further raise rates, maintaining that inflation was under control.

Though monthly inflation is declining, Egypt’s annual inflation rose to 14.7% in June, up from 5.3% from the same month last year, according to Al-Ahram.

What’s next: The Central Bank’s monetary policy committee will meet again on Aug. 18, when they will decide whether to take further action on interest rates.

The views expressed in Op-Ed pieces are those of the author and do not purport to reflect the opinions or views of Libyan Express.
How to submit an Op-Ed: Libyan Express accepts opinion articles on a wide range of topics. Submissions may be sent to oped@libyanexpress.com. Please include ‘Op-Ed’ in the subject line.
You might also like

Submit a Correction

For: Egypt inflation rate slows to 13.2% in June

Your suggestion have been successfully submitted

There was an error while trying to send your request. Please try again.

Libyan Express will use the information you provide on this form to be in touch with you and to provide updates and marketing.