Egypt's monthly Consumer Price Index (CPI) dropped by 0.8 per cent to 221.8 points in May, the first drop since June 2022, as per CAPMAS data released on Monday. Annual inflation rate for May 2024 recorded 27.4 per cent, down from 31.8 per cent in April of the same year. The report associates the CPI drop with a significant decline in prices in various essential categories. Grains and bread prices dipped by 2.5 per cent, while meat and poultry saw a sharp decrease of 4.6 per cent. Additionally, the cost of fish and seafood, dairy products, honey, and eggs all experienced notable drops, with vegetables witnessing the most significant decline at 8.7 per cent. These reductions come against the backdrop of increasing global concerns over inflation and its potential impacts on consumer purchasing power. Despite these declines, certain sectors experienced price hikes. Notably, fruits saw a substantial increase of 12.4 per cent, alongside modest rises in tea, coffee, cocoa, fabrics, ready-made clothing, shoes, and rental housing. However, these increases were not substantial enough to offset the overall decrease in the CPI. Economists are closely monitoring these developments, as Egypt grapples with maintaining economic stability amidst fluctuating global conditions.
