Stability in Egypt: Inflation Holds Steady Amid Economic Measures

Egypt's urban consumer inflation remains unchanged at 12.3% in December, as reported by CAPMAS. Month-on-month urban consumer prices slightly increased by 0.2%, with annual food and beverage prices rising 1.5%. Despite predictions of a rise, inflation steadied thanks to financial support measures.

CAIRO, Jan 10 (Reuters) - Egypt's urban consumer inflation held steady at 12.3% in December, marking no change from November, according to data released by the statistics agency CAPMAS on Saturday.

Month-on-month, urban consumer prices saw a modest rise of 0.2% in December. Food and beverage prices increased by 1.5% annually, though they dipped by 0.7% on a monthly basis.

An earlier Reuters poll had anticipated headline inflation to edge up to 12.5%, largely due to stable food prices. However, inflation steadied after an unexpected drop following November. This stability is attributed to the effects of an $8 billion IMF financial support package agreed in March 2024, which has been instrumental in reducing inflation from a high of 38% in September 2023.

(With inputs from agencies.)