The Central Bank of Egypt (CBE) has reported a slight decrease in annual core inflation, which dropped to 23.7% in November 2024, down from 24.4% in October 2024. Monthly core inflation for November 2024 stood at 0.4%, a decrease from 1.0% in November 2023 and 1.3% in October 2024.
The decline in annual urban headline inflation was also noted, falling to 25.5% in November 2024, from 26.5% in October 2024. This decrease was largely attributed to a significant reduction in the prices of core food items and fresh vegetables, which experienced their largest price drop since July 2022. However, non-food prices saw an uptick, primarily driven by increases in regulated items and services such as fuel, transportation, and tobacco, although the rising food prices somewhat offset this increase.
The monthly core inflation developments reflected a drop in core food prices, particularly poultry and eggs. However, this decline was partly offset by a rise in service prices, including rents. Monthly urban headline inflation for November 2024 recorded 0.5%, down from 1.3% in November 2023 and 1.1% in October 2024. The monthly changes mirrored the lower food prices, especially due to the seasonal decrease in fresh vegetable prices and reductions in selected core food items.
Annual rural headline inflation decreased to 24.4% in November 2024 from 26.1% in October 2024, while nationwide headline inflation also fell to 25.0% in November 2024, down from 26.3% in the previous month.
Price changes for specific food items were also significant. Fresh fruit prices increased by 3.3%, while fresh vegetable prices saw a notable decrease of 11.8%, contributing negatively to the monthly headline inflation. Additionally, prices for poultry and eggs decreased by 6.3% and 2.3%, respectively, further reducing inflation.
On the other hand, prices for oils and fats increased by 2.0%, contributing 0.06 percentage points to the monthly headline inflation. Dairy prices rose by 1.0%, contributing 0.05 percentage points.
Regulated items, including fuel, inland transportation, and tobacco, saw a price increase of 3.8%, contributing 0.77 percentage points to the monthly headline inflation. Services also saw a rise, with a 1.2% increase contributing 0.32 percentage points to inflation, primarily driven by higher costs in restaurants, cafes, and rents.
Retail item prices rose by 1.6%, contributing 0.22 percentage points to monthly headline inflation, largely driven by increases in clothing, footwear, vehicle purchases, and personal care products.
The core inflation figures reflect the combined impact of these various price changes, with core food items contributing a negative 0.32 percentage points, while retail items and services added 0.30% and 0.44%, respectively.
