The revised forecast, up from its previous projection of 20%, was attributed to an unexpected rise in inflation in February.
International investment firm Goldman Sachs updated its forecast for Egypt’s inflation rate at the end of the year, predicting an uptick to 22% on an annual basis, according to a research note seen by the Arab World News Agency (AWP).
The revised forecast, up from its previous projection of 20%, was attributed to an unexpected rise in inflation in February.
The firm also highlighted the gradual reduction of supply chain bottlenecks, the narrowed gap between the official and black market exchange rates, and tighter monetary policy stabilizing inflation expectations.
Egypt’s headline inflation fell in April to 32.8%, down from 33.1% in March, according to a report by the Central Agency for Public Mobilization and Statistics (CAPMAS) last week.
CAPMAS attributed the decline to a drop in prices of bread and cereals by 3.7%, poultry and meat by 1.8%, oils and fats by 2.5%, and other food items by 5.7%.
Prices of food and beverages climbed by 40.5% year-on-year in March, with prices of clothing and shoes increasing by 25.7%.
Annual inflation hit a record high in February of 36% before declining in March.
Goldman Sachs expects that Egypt will experience further price reductions in 2025 due to favorable effects of the base period, as well as constrained demand pressures against the backdrop of ongoing monetary policy and the government’s tightening of fiscal policy in coming months.
