A recent survey showed that Egypt's annual inflation may decline slightly in November, falling to 26.4% compared to 26.5% in October, driven by falling prices of some foodstuffs.
The average forecast of 15 economic analysts, included in the survey, indicated the possibility of recording this slight decline in the annual inflation rate of consumer prices in Egyptian cities.
The decline in the prices of some food, such as vegetables, may contribute to the slowdown in annual inflation, and a significant impact of food on the general inflation index, according to Reuters.
The inflation rate rose in August, September and October, but remained well below its all-time high of 38%, which it recorded in September 2023.
Several economic factors have affected inflation expectations, as Egypt last March signed an agreement with the International Monetary Fund worth $8 billion aimed at reducing the budget deficit and implementing a more stable monetary policy.
However, the government's commitment to reduce subsidies on some domestic goods has led to notable increases in their prices.
The central bank's data also showed that the growth of the cash supply (N2) reached 29.54% year-on-year until the end of October, which contributed to high inflation rates.
Recent increases in fuel prices, which ranged from 10% to 33%, along with raising the prices of subway and electricity tickets, have put pressure on the inflation rate. Cigarette prices also rose after the government approved new increases in early November.
Not all analysts agreed on the possibility of low inflation, some predicted inflation to rise to 27.1%, pointing to the impact of recent price increases on the numbers.
Others expected core inflation to decline in November to 24.2% compared to 24.4% in October.
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