Key insights
- Egyptian inflation unexpectedly slowed to 14.9% in April, defying expectations of a rise. While seemingly localized, this event highlights the sensitivity of emerging markets to global commodity prices and geopolitical tensions (Iran war mentioned). Lower inflation in some EM countries could reduce pressure on the Federal Reserve to maintain a hawkish stance, but the effect is marginal.
CAIRO, May 6 (Reuters) - Egypt’s annual urban consumer inflation rate slowed unexpectedly to 14.9% in April from 15.2% in March, figures from statistics agency CAPMAS showed on Wednesday.
Month-on-month, prices rose by 1.1% in April, it said. Food and beverage prices fell by 0.7% on a monthly basis but rose 6.7% year on year.
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A Reuters poll of 14 analysts had forecast inflation would climb to 15.9% in April, with the analysts saying the war with Iran had triggered an increase in electricity prices at the start of the month, a weakening of the currency and an increase in commodity prices, especially poultry.
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Annual inflation has plunged from a record high of 38% in September 2023, helped by an $8-billion financial support package signed with the International Monetary Fund in March 2024.
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May inflation figures may be boosted by an increase in natural gas prices for several energy-intensive industries announced on May 3.