Egypt’s annual inflation rate dropped to its lowest level in two years, according to official data released on Thursday.
The state statistics agency CAPMAS reported that inflation fell to 23.4% in December, down from 25% in November. The decrease was attributed to a reduction in the prices of certain food and beverages.
Consumer prices in urban areas rose by 24.1% in December compared to 25.5% in November, marking the second consecutive month of slowing inflation.
For the full year, CAPMAS noted that annual inflation stood at 28.3% in 2024, a decline from 33.9% in 2023. However, this remains significantly higher than the 13.9% inflation rate recorded in 2022.
Economic Challenges
The drop in inflation comes despite economic difficulties, including a currency devaluation in March that saw the Egyptian pound trade at 50 pounds to the US dollar.
In response to ongoing economic pressures, Egypt has raised the prices of fuel, electricity, subsidized bread, medicine, and transportation in recent months.
The government’s measures are part of broader efforts to stabilize the economy amid persistent challenges.