CAIRO, July 9 – Egypt’s annual urban inflation slowed for a third consecutive month in June, reinforcing signs that price pressures are easing even as policymakers remain cautious amid renewed geopolitical uncertainty in the Middle East.
According to data released by the Central Agency for Public Mobilization and Statistics (CAPMAS), consumer prices in urban areas rose 14.3% year on year in June, down from 14.6% recorded in May. On a monthly basis, prices fell by 0.4%, reversing the 1.6% increase registered in the previous month.
The moderation in inflation comes as the Central Bank of Egypt prepares to announce its latest monetary policy decision. While easing price growth could strengthen the case for maintaining or further easing monetary conditions, lingering uncertainty surrounding US-Iran peace negotiations and broader regional developments may encourage policymakers to adopt a more cautious approach.
Egypt has made progress in bringing inflation down from the elevated levels seen in recent years following economic reforms, tighter monetary policy and currency adjustments. However, external risks, including energy prices and geopolitical tensions, continue to pose challenges to the country’s inflation outlook.
The latest inflation figures will be closely watched by investors and businesses for indications of the central bank’s next policy move as authorities seek to balance price stability with supporting economic growth.
