Egypt’s inflation surges at fastest pace this year in May
This surge was primarily driven by increasing food prices, according to data released by the Central Agency for Public Mobilization and Statistics (CAPMAS) on Wednesday.
This marks the third monthly acceleration in consumer price increases in Egyptian cities this year, following similar upticks in March and April. On a monthly basis, urban inflation stood at 1.9 percent in May, compared to 1.3 percent in April.
Key drivers of inflationary pressure
The rise in May was notably fueled by significant increases in food categories: fruit prices jumped 13.4 percent year-on-year, vegetables rose 2.1 percent, and fish increased by 2.4 percent.
Additionally, prices for medical appliances and equipment saw a 6.9 percent increase.
Central Bank’s outlook and administrative decisions
Despite the Central Bank of Egypt (CBE) noting a moderation in upward inflation risks in May, it cautioned that these risks “remain present due to the effects of protectionist trade policies globally, escalating regional conflicts, and fiscal adjustment impacts exceeding expectations.”