Egypt's headline consumer price index reached 243.5 points in January, marking an annual inflation rate of 23.2%, a slight decrease from December's 23.4%, per official statistics. The Central Agency for Public Mobilization and Statistics attributes the inflation deceleration primarily to a 2.6% drop in vegetable prices and a 0.3% reduction in fish and seafood prices from December to January.
Key sectors like education, health services, and telecommunications saw stable costs. However, essential commodities experienced price increases. Bread and cereals rose by 1.3%, and meat and poultry surged by 5.0%. Dairy, cheese, and eggs increased by 0.3%, while oils and fats went up by 0.7%. The most pronounced rise was in fruits, which climbed 9.8%, contributing to a 1.6% monthly inflation in January.
Other sectors also faced price hikes, with personal care products up 1.5%, hospital services 1.4%, and furnishings and household appliances 0.6%. Electricity, gas, and fuel increased by 0.1%, and hotel services by 3.3%.
Annually, food and beverages increased by 20.2%, tobacco and alcoholic drinks by 29.5%, housing, utilities, and fuel by 18.7%, healthcare services by 40.5%, and transport by 33.6%. Education costs remained unchanged. Postal services saw a 94.3% rise, cultural and recreational services 48%, and transport services 39%.
Despite slight moderation in annual inflation, elevated food and transport costs challenge Egyptian households. Analysts predict persistent inflationary pressures due to currency fluctuations, global commodity prices, and domestic supply chain issues. The Egyptian pound's depreciation has increased import costs, especially for food and energy.
In response, the government has implemented subsidies and price controls on essential goods, alongside structural economic reforms. Policymakers are expected to adjust monetary and fiscal measures to balance growth with price stability amid global uncertainties.
Source: Arab News