Egypt’s annual core inflation decelerated slightly to 26.6% in June 2024 from 27.1% in May, marking its lowest level since December 2022, according to the Central Bank of Egypt (CBE).

In its monthly inflation note, the central bank noted a similar decline in monthly core inflation, which stood at 1.3% last month, down from 1.7% a year earlier.

Annual headline inflation declined to 27.1% in June from 27.4% in May, the CBE explained, with core CPI registering 221.08 last month compared to 174.57 recorded in June 2023.

Urban headline inflation continued its downward trajectory for the fourth consecutive month, registering 27.5% in June, compared to 28.1% in May.

The monthly urban headline inflation rate recorded 1.6%, bouncing back from a negative 0.7% in May, but lower than June 2023’s 2.1%.

This increase was primarily driven by core food prices, which had seen negative inflation rates in previous months, offsetting a slight deceleration in non-food inflation.

Annual food inflation saw a modest uptick, climbing to 31.9% in June from 31.0% in May, mainly attributed to higher prices in core food items and the impact of government-mandated subsidy adjustments, including a significant 300% price hike in subsidized bread implemented on May 29.

Fresh fruit prices decreased by 4.4%, while fresh vegetable prices increased by 1.7%.

Poultry prices rose by 8.3%, with unsubsidized bread climbing by 8.1% and dairy products posting a 0.4% increase.

Market sugar continued its decline for the second consecutive month, dropping by 1.9%.

Regulated items, including subsidized bread and medical products, witnessed significant price increases last month climbing 3.3%, collectively contributing 0.64 percentage points to monthly headline inflation.

Annual non-food inflation eased to 24.5% from 26.2% in the previous month.

Retail items saw a 1.8% increase in prices, driven by higher costs in medical products, clothing, footwear, and personal care items.

Rural headline inflation remained steady at 26.6%, mirroring the national average, which saw a slight decrease from 27.4% in May 2024 to 27.1% in June 2024.