CBE explains reasons behind decline in inflation in June

Annual headline urban inflation decelerated for the first time after increasing for six months to record 13.2% in June 2022, down from a peak of 13.5 % in May 2022, which was the highest rate since May 2019.

June 2022’s inflation figures were mainly impacted by a strong decline in prices of volatile food items, which can be attributed to the high temperatures witnessed lately and their effect on the harvests, hence the increased supply of many agricultural products. This comes as monthly headline urban inflation recorded -0.1% in June 2022 compared to 0.2% in June 2021.