Egypt’s inflation falls to 33.3% in March

Compared to the previous month, prices rose by one percent in March, down from 11.4 percent in February.

A survey of 12 analysts had expected annual inflation to rise to an average of 36.3 percent as prices adjusted to a currency devaluation as well as an interest rate hike in early March and an increase in fuel prices two weeks later.

“While we don’t expect any further rate hikes, rate cuts won’t be on the agenda until well after 2025,” said James Swanston, Middle East and North Africa economist at Capital Economics.

On March 6, the central bank allowed the Egyptian pound to fall from 30.85, where it had been set for the past 12 months, to around 50 to the dollar. It has since risen to 47.60 per dollar.
The government raised prices on a wide range of fuel products on March 22 as it pressed ahead with a commitment made to the International Monetary Fund more than a year earlier to allow most domestic prices to rise to international levels.

Inflation has been elevated for the past year, driven largely by rapid growth in the money supply. Annual inflation reached a historic high of 38 percent in September.

“We think that inflation will remain elevated over the rest of this year,” said Swanston.