Egypt Inflation

Inflation slows in April from March

Latest reading: Consumer prices increased 14.9% on a year-on-year basis in April, following a 15.2% rise in the prior month. Relative to the previous month's data, price pressures reduced for transportation in April (+29.2% in annual terms vs +39.5% in March). In contrast, there were more notable price pressures for food and non-alcoholic beverages—the largest component in the consumer price index basket (+6.7% vs +5.8% in March) and housing and utilities (+38.5% vs +35.3% in March). Meanwhile, core consumer prices rose 13.8% on a year-on-year basis in April, following a 14.0% increase in the previous month. Lastly, consumer prices rose 1.09% in April on a month-on-month basis, following a 3.20% increase in the previous month.

Panelist insight: On the inflation outlook, Goldman Sachs analysts said: “We continue to see upside risks to Egypt's inflation outlook, amidst an unfavourable external environment (higher energy prices, broader supply-chain pressures) and domestic inflationary pressures (administered price hikes). The CBE has in the past 18 months adopted a cautious, data-driven reaction function as it pivots towards an inflation-targeting regime and tries to diminish the role of the exchange rate as a nominal anchor of inflation expectations.”

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Egyptian inflation projections for the next ten years from a panel of 18 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for Egyptian inflation.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Egyptian inflation projections.

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