Egypt Daily News – The Central Bank has revised its expectations for the start of a decrease in the inflation rate with the cumulative impact of monetary tightening decisions and the positive effect of the base period.
The Central Bank predicted in today’s Monetary Policy Committee report that the inflation rate will start to decline from the first quarter of 2025.
Last May, the central bank expected a significant decrease in inflation during the second half of next year.
The Central Bank of Egypt decided to maintain the interest rate for the fourth consecutive time at 27.25% for deposits and 28.25% for lending, reflecting the latest developments and expectations at both the global and local levels since the previous meeting of the Monetary Policy Committee.
The inflation rate across Egypt’s cities accelerated for the second consecutive month to 26.4% in September from 26.2% in August due to the increase in the prices of gasoline, diesel, and electricity.
The Central Bank explained that non-food items are the main driver of inflation during August and September 2024 due to the measures taken by the state to regulate public finances.
This has led to a reduction in the positive impact of both the gradual waning of the effects of previous shocks, the decline in food commodity inflation, and the positive impact of the base period.
The Central Bank explained that non-food items are the main driver of inflation during August and September 2024 due to the measures taken by the state to regulate public finances.
This contributed to limiting the positive impact of both the gradual waning of previous shocks, the decline in food commodity inflation, and the positive base effect.
The gradual decline in food price inflation, along with improved inflation expectations since the beginning of the year, indicates that inflation will continue on its downward path, although its pace is constrained by measures to stabilize public finances, according to the central bank.
