Egypt’s Central Agency for Public Mobilization and Statistics (CAPMAS) revealed on Monday a decline in the annual consumer price inflation rate in urban areas to 33.3% in March, down from 35.7% in February.
The “Economist” newspaper reported these statistics, indicating a slight relief in the inflationary pressures that have been affecting the country.
Notably, the cost of vegetables decreased by 3.5% on a yearly basis, grains and bread saw a 0.3% drop, and personal luggage expenses fell by 4.1%. These changes come as Egyptians have been grappling with rising prices across various sectors.
In response to the inflationary challenges and to alleviate the financial burdens on citizens, Egyptian President Abdel Fattah el-Sisi announced in February a significant measure to increase the minimum wage by 50%, setting it at 6,000 Egyptian pounds per month.
This move is part of the largest package aimed at easing the cost of living pressures faced by the populace.
Additionally, in a surprising move last March, the Central Bank of Egypt (CBE) decided to increase its key interest rates by 600 basis points and to allow the Egyptian pound to float freely according to market mechanisms.
This decision is part of the efforts to stabilize the economy and manage inflationary expectations.
Egypt received approval from the International Monetary Fund (IMF) Executive Board for an increase in its extended financial support program to eight billion dollars. This allows for an immediate withdrawal of about 820 million dollars.
The IMF Executive Board also announced the completion of the first and second reviews under Egypt’s Extended Fund Facility.
