Egypt's Rate of Inflation Falls to 28.1% in May 2024

Egypt’s official rate of annual urban consumer price inflation decreased by 4.4 percentage points in May 2024 to 28.1%, down from 32.5% in April 2024. This fall is sharper than predicted by experts; a poll of 19 economic analysts had predicted a median inflation rate of 30.4% in May.

The latest inflation figure marks a drop just shy of 10 percentage points from the peak inflation rate of 38% in September 2023. The extreme rates of inflation over the past year mean that, on average, food prices in May 2023 were 31% higher than 12 months prior in May 2023.

The trend of decreasing inflation rates in Egypt has now continued for three consecutive months, with Goldman Sachs forecasting that the rate will drop to 10% by the end of June 2025, following the floatation of the pound exchange rate. The prediction also follows an influx of financial assistance from various international institutions - including the World Bank, the European Union (EU), and the International Monetary Fund (IMF) - and the landmark Ras El Hekma deal with the UAE’s sovereign wealth fund.