Cityscape in Egypt

Egypt Inflation June 2019

Egypt: Inflation slumps in June but is set to climb again in July on fuel subsidy cuts

Consumer prices fell 0.8% in June compared to the previous month, contrasting the 1.1% rise in May. The decrease in June was overwhelmingly due to lower prices for food and beverages.

Inflation decelerated rapidly in June, hitting 9.4%, down from 14.1% in May and coming close to the 9.0% midpoint of the Central Bank’s Q4 CY 2020 target range of 6.0% to 12.0%. June’s reading was significantly lower than market analysts had expected and represented the lowest reading since March 2016. For its part, core inflation slowed to 6.4% in June, down from 7.8% in May. Annual average inflation moderated to 13.9% in June from 14.3% in May.

Looking ahead, inflation is likely to climb again in July as the effects of fuel subsidy cuts, which were implemented at the start of the month by the government, become felt. The subsidy cuts were a requirement of the three-year IMF support program that Egypt signed up to in November 2016 and will soon complete.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest