Egypt’s monthly inflation falls for first time in 2022
The Central Bank of Egypt declined to raise interest rates again last month. Annual inflation is still up from last year.
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.
