Egypt’s Inflation Rate Reaches 35.7% in February

Egypt’s annual inflation surged in February.

According to Capmas statistics on the 10th (local time), Egypt’s annual urban consumer price inflation surged from 29.8% in January to 35.7% in February, fueled by rising food and beverage prices.

The central bank stated that core inflation, excluding fuel and some volatile foods, rose from 29% in January to 35.1% in February.

Egypt’s inflation surge occurred ahead of a sharp rise due to the currency’s depreciation last week. Also, the central bank has depreciated the Egyptian pound, fixed at 30.85 for the past 12 months, to approximately 50 dollars.

Prices rose from 1.6% in January to 11.4% in February, and food prices rose from 1.4% in January to 15.9% in February.

On the other hand, according to a poll of 14 analysts, February inflation was expected to slow to a median of 25.1%.

Egypt’s inflation rate has been falling from a record high of 38.0% in September until February.

Allen Sandeep of NAEEM Brokerage said, “The sharp rise in annual figures is due to the surge in monthly inflation of food (F&B) and non-food items, despite the favorable base year contribution of -5.5%.”