Egypt's annual urban inflation jumps to 35.7% in February

Driven mainly by a rise in food and beverage prices, cash-strapped Egypt's annual urban consumer price inflation jumped to 35.7% last month.

Economy

1 min read

�� Staff & Agencies

10 March, 2024

Egyptians are reeling under a currency crisis and rising inflation [Getty]

Egypt's annual urban consumer price inflation jumped to 35.7% in February from 29.8% in January, driven mainly by a rise in food and beverage prices, data from statistics agency CAPMAS showed on Sunday.

The increase in inflation comes well before a surge expected to result from last week's devaluation of the currency. The central bank on Wednesday allowed the Egyptian pound to fall to about 50 to the dollar from 30.85, where it had been fixed for the past 12 months.

A poll of 14 analysts had expected February inflation to slow to a median 25.1%. Before February, Egypt's inflation rate had been falling from a historic high of 38.0% in September.

Month-on-month, prices rose by 11.4% in February, up from just 1.6% in January. Food prices leapt by 15.9%, up from 1.4% in January.

"The sharp rise in the annual reading was fuelled by a surge in monthly inflation of both food (F&B) and non-food items and was in spite of the favourable base year contribution of -5.5%," Allen Sandeep of Naeem Brokerage sais in a note.