Egypt’s annual urban consumer price inflation rate eased to 25.5% in November 2024, marking its lowest level since December 2022, according to data from the Central Agency for Public Mobilization and Statistics (CAPMAS) released on Tuesday. This decrease follows a slight drop from 26.5% in October.
Key Drivers of Inflation Decline
The drop in inflation came as a result of significant reductions in the prices of key food items. The food and beverage sector, which has been a major contributor to inflation, saw a monthly decline of 2.8%. Vegetables experienced a sharp drop of 12.4%, while meat and poultry prices fell by 3.0%. Other food categories, such as fruits, grains, and bread, also saw small decreases.
However, there were price increases in other food sectors. Oils and fats rose by 2.0%, mineral water and soft drinks by 2.4%, and coffee, tea, and cocoa by 0.8%.
Sector-Specific Price Movements
Despite the decline in food prices, several other sectors experienced notable price hikes. The transportation sector rose by 6.2%, driven by increases in both private and public transport costs, which saw a jump of 6.9% and 6.7%, respectively. Cultural and recreational services experienced one of the largest increases, surging by 13.3%.
Housing and utilities costs also rose by 1.6%, with a notable 3.1% increase in electricity, gas, and other fuels. Healthcare costs saw a slight increase of 0.5%, particularly in outpatient and hospital services, which rose by 1.2% and 1.3%, respectively.
Annual Inflation Breakdown
On a year-on-year basis, Egypt’s overall inflation rate for November 2024 stood at 25.0%, a decrease from 26.3% in October. Prices in the food and beverage category saw significant increases, with fruits up by 32.7%, vegetables by 27.8%, and oils and fats by 16.1%. Transportation costs saw a 37.6% rise, driven by a 44.2% increase in public transport services. Cultural and recreational services experienced a dramatic rise of 48.5%, with books and stationery prices increasing by 62.7%. Housing and utilities costs increased by 21.8%, largely due to a 49.3% rise in electricity, gas, and fuel prices.
Inflation Measurement Methodology
CAPMAS tracks inflation by monitoring a basket of over 1,000 goods and services monthly across eight geographic regions. To ensure accuracy, weekly checks are conducted on 333 key commodities, particularly for items with volatile price movements such as vegetables and fruits.
The latest figures show that inflation is gradually easing, although challenges remain, particularly in food and transportation sectors, as Egypt continues to recover from economic turbulence sparked by global events such as the Russian invasion of Ukraine.
