Skip to main content

Egypt inflation drops to 31.5%, but food prices still rising

Annual inflation fell slightly in April compared to the previous month as the central bank readies its next decision on interest rates.
Two pairs of US hundred dollar and Egyptian hundred pound notes are held before a window showing the skyline of Egypt's capital Cairo and the Nile river on January 16, 2023. - With Egypt's economy in crisis, the currency in freefall and inflation skyrocketing, the poor have been hit hard but the middle class is also teetering on the brink. The Egyptian pound has lost half its value against the dollar since March, following a devaluation demanded as part of a $3 billion International Monetary Fund loan agree

Inflation in Egypt decreased in April for the first time in 10 months, the Egyptian government said on Wednesday. Prices are still high, and the news could have an effect on the central bank’s upcoming decision on interest rates.

The Central Agency for Public Mobilization and Statistics said that annual headline inflation was 31.5% in April, down from 33.9% in March. This was the first decrease in annual headline inflation from one month to another in 10 months. On the other hand, the 31.5% figure is significantly higher than the 14.9% annual headline inflation in April of 2022, according to Egypt’s state-owned news outlet Al-Ahram.

Why it matters: Inflation in Egypt has been surging for more than a year. Food prices in particular are on the rise.

The inflation is related to the Russian invasion of Ukraine. Egypt imported most of its grain from Ukraine and Russia before the war. Egypt is buying Ukrainian grain again, but bread prices are still on the rise. Grain and bread prices rose 7% in April, according to the Central Agency.

The Central Bank of Egypt has raised interest rates several times over the past year in an effort to bring down inflation. Most recently, the bank hiked rates by 2% in March. The bank’s Monetary Policy Committee will meet again on May 18. The slight decrease in inflation could compel the bank to hold firm on rates.

Many Egyptians are skeptical of the interest rate hikes due to inflation persisting, Amr Emam reported for Al-Monitor from Cairo in April.

Know more: There is a shortage of US dollars and other foreign currencies in Egypt. In response, the Egyptian government decided last month to charge foreign ships in dollars in an effort to bring more dollars into Egypt.

Join hundreds of Middle East professionals with Al-Monitor PRO.

Business and policy professionals use PRO to monitor the regional economy and improve their reports, memos and presentations. Try it for free and cancel anytime.

Already a Member? Sign in

Free

The Middle East's Best Newsletters

Join over 50,000 readers who access our journalists dedicated newsletters, covering the top political, security, business and tech issues across the region each week.
Delivered straight to your inbox.

Free

What's included:
Our Expertise

Free newsletters available:

  • The Takeaway & Week in Review
  • Middle East Minute (AM)
  • Daily Briefing (PM)
  • Business & Tech Briefing
  • Security Briefing
  • Gulf Briefing
  • Israel Briefing
  • Palestine Briefing
  • Turkey Briefing
  • Iraq Briefing
Expert

Premium Membership

Join the Middle East's most notable experts for premium memos, trend reports, live video Q&A, and intimate in-person events, each detailing exclusive insights on business and geopolitical trends shaping the region.

$25.00 / month
billed annually

Become Member Start with 1-week free trial
What's included:
Our Expertise AI-driven

Memos - premium analytical writing: actionable insights on markets and geopolitics.

Live Video Q&A - Hear from our top journalists and regional experts.

Special Events - Intimate in-person events with business & political VIPs.

Trend Reports - Deep dive analysis on market updates.

All premium Industry Newsletters - Monitor the Middle East's most important industries. Prioritize your target industries for weekly review:

  • Capital Markets & Private Equity
  • Venture Capital & Startups
  • Green Energy
  • Supply Chain
  • Sustainable Development
  • Leading Edge Technology
  • Oil & Gas
  • Real Estate & Construction
  • Banking

We also offer team plans. Please send an email to pro.support@al-monitor.com and we'll onboard your team.

Already a Member? Sign in

Business & Tech Briefing Business & Tech Briefing

Business & Tech Briefing

Middle East venture, M&A and economics in your inbox

Trend Reports

Saudi Crown Prince Mohammed bin Salman (4th R) attends a meeting with Chinese President Xi Jinping (3rd L) at the Great Hall of the People in Beijing on February 22, 2019. (Photo by HOW HWEE YOUNG / POOL / AFP) (Photo credit should read HOW HWEE YOUNG/AFP via Getty Images)
Premium

From roads to routers: The future of China-Middle East connectivity

A general view shows the solar plant in Uyayna, north of Riyadh, on March 29, 2018. - On March 27, Saudi announced a deal with Japan's SoftBank to build the world's biggest solar plant. (Photo by FAYEZ NURELDINE / AFP) (Photo credit should read FAYEZ NURELDINE/AFP via Getty Images)
Premium

Regulations on Middle East renewable energy industry starting to take shape

Start your PRO membership today.

Join the Middle East's top business and policy professionals to access exclusive PRO insights today.

Join Al-Monitor PRO Start with 1-week free trial