Defying expectations: Inflation down in Egypt

Egypt’s headline inflation went down to 4.3 per cent in January from 5.4 per cent in December, according to the Central Agency for Public Mobilisation and Statistics (CAPMAS), reports Ahmed Kotb.

The CAPMAS report cited a 1.6 per cent decline in food prices on a monthly basis in January and a 0.5 per cent decline on an annual basis compared to January 2020. The decline was driven mainly by the decrease in the prices of some commodities, including vegetables, which fell by 20.4 per cent compared to December.

Egypt’s Consumer Price Index, according to the report, recorded a monthly rate of negative 0.4 per cent in January, compared to 0.7 per cent for the same month last year, and negative 0.4 per cent in December 2020, the statement added.

The figures come after an average inflation rate of five per cent was reported in 2020, the lowest in 15 years, according to the report. CAPMAS said this was the largest annual decline in inflation among emerging markets worldwide, with the figure falling by 4.2 percentage points from 9.2 per cent in 2019.