Egypt's Inflation: A Surprising Plunge

Egypt's urban consumer price inflation rate fell to 25.5% in November, marking the lowest level since December 2022. Inflation, driven up by geopolitical events and increased money supply, has been declining from its September 2023 peak of 38.0%. Food prices saw a notable decrease last month.

Egypt's urban consumer price inflation rate experienced an unexpected drop to 25.5% in November, marking its lowest point since December 2022, according to CAPMAS data released on Tuesday.

The rise in inflation began in early 2022, influenced by the Russian invasion of Ukraine, leading foreign investors to pull billions from Egyptian treasury markets. Although inflation hit a record 38.0% in September 2023, it had decreased to 26.5% by October 2024.

Analyst predictions had placed November's annual inflation rate at 26.4%, but it fell below expectations. Monthly, inflation increased by 0.5% in November, down from October's 1.1%. Food prices dropped 2.8% for the month, standing at 23.3% higher than the previous year. The expansion of the money supply, showing a 29.54% year-on-year growth in October, has significantly contributed to the inflationary trend.

(With inputs from agencies.)