Why did Egypt’s inflation increase again in May? CBE answers

Egypt’s annual headline urban inflation increased to 32.7% in May 2023 from 30.6% in April 2023. The annual increase was mainly driven by higher food prices and supported by continued higher non-food prices, according to the Central Bank of Egypt (CBE). 

The annual food inflation increased to 60% in May 2023, and annual non-food inflation continued to increase to record 19% in May 2023.

The annual core inflation resumed its upward trend to record 40.3% in May 2023, after slightly decelerating for two consecutive months to 38.6 and 39.5% in April and March 2023, respectively.

The monthly core inflation recorded 2.9% in May 2023, compared to 1.7% in April 2023 and 1.6% in May 2022.

The monthly headline urban inflation increased as well in May 2023 to record 2.7% up from 1.7% in April 2023, and was driven by food items and non-food items. Food inflation increased due to a rise in regulated and core food prices.

Higher prices of both regulated and core food items were basically driven by the increase in subsidized food prices (such as sugar and vegetable oil) announced by the Ministry of Internal Trade and Supply; and higher major core food prices (such as red meat, seafood and rice).