Egypt’s Inflation Rate Dropped to 12.8% in February

Egypt’s annual urban consumer inflation rate has dropped significantly to 12.8% in February, down from 24% in January, according to the latest data from the Central Agency for Public Mobilization and Statistics (CAPMAS). This marks one of the sharpest declines in inflation in recent years, surpassing expectations from economic analysts.

A Reuters poll had projected the inflation rate to fall to 14.5%, but the actual decrease was even steeper. The decline is largely attributed to the fading of previous price surges and the stabilization of food and beverage prices, which had seen some of the highest inflationary pressures in recent months.

The drop comes as a result of Egypt’s monetary tightening policies and the impact of economic reforms aimed at curbing inflation. The Central Bank of Egypt (CBE) had previously held its overnight interest rates steady, anticipating a sharp fall in inflation due to these corrective measures.

With inflation easing, the economic landscape is shifting, bringing some relief to households and businesses. Lower inflation is expected to boost consumer confidence and create a more favorable climate for investment and economic growth in the months ahead.