Egypt’s annual urban inflation increased to 13.1% in April, from 10.5% in March 2022, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).
According to the agency, the consumer price index for the whole country reached 129 points in April, registering an increase of 3.7% over March 2022.
The agency attributed this rise to the increase in the prices of vegetables by 32.0%, fish and seafood by 12.1%, fruits by 11.9%, meat and poultry by 5.4%, cereals and bread by 3.6%, and dairy, cheese and eggs group by 1.3% .
The prices of ready-made clothes increased by 4.5%, electricity, gas and other fuel materials by 1.6%, home rent by 0.9%, goods and services used in home maintenance by 2.4%, expenses spent on private transportation by 2.9%, ready-made meals made by 2.4%, and personal care by 2.5%.
According to the agency, the country’s annual inflation recorded 14.9% in April 2022, compared to 4.4% in April 2021, and 12.1% in March 2022.
Moreover, the monthly core inflation, computed by the Central Bank of Egypt (CBE), recorded 2.4% in April 2022, down from 3.1% in March 2022, and 0.7% in April 2021. Accordingly, the annual core inflation increased to 11.9% in April 2022, compared to 10.1% in March 2022.
The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) will hold its third periodic meeting on 19 May 19 this year, to discuss the fate of the basic interest rates at the CBE, which are the main indicators of the interest rates on the pound in the short term.
The market was awaiting the latest indicators of inflation in the local market to determine the next move of CBE.
The Central Bank targets the inflation rate at 7% (±2%) on average during the fourth quarter of this year.
The MPC decided, in an extraordinary meeting, held on 21 March 2022, to increase the basic interest rates in CBE by 1%, to reach 9.25% for depositing, 10.25% for lending, and 9.75% for the credit and discount rate and the price of the main operation of the CBE.
In a statement, the MPC indicated that global inflationary pressures began to re-emerge, after signs of recovery of the global economy from the turmoil caused by the pandemic, due to the developments of the Russian-Ukrainian conflict. The global economy is increasingly threatened by this war.
The MPC added that on top of these pressures comes the noticeable increase in global commodity prices, supply chain disruptions and high freight costs, in addition to the fluctuations of financial markets in emerging countries, which led to domestic inflationary pressures and increased pressure on the external balance.
The committee emphasized that achieving low and stable inflation rates in the medium term is a prerequisite for supporting the purchasing power of the Egyptian citizen, and achieving high and sustainable growth rates.
