Egypts headline inflation surges to 25.8% in January

Egypt's headline inflation surges to 25.8% in January

CAIRO (Reuters) – Egypts annual urban consumer price inflation jumped to a higher-than-expected 25.8% in January, its fastest in more than five years, from 21.3% in December, data from statistics agency CAPMAS showed on Thursday.

The rise followed a series of currency devaluations since March 2022, a prolonged shortage of foreign currency, and continuing delays in getting imports into the country.

January inflation was the highest since December 2017, a year after a steep devaluation.

Economists had expected a reading of 23.75%, the median forecast in a Reuters poll of 14 showed.

Five analysts had forecast that core inflation would climb to 26.6% from 24.4% in December.

The central bank is expected to release the January figure later on Thursday.

The high January number increases pressure on the central banks Monetary Policy Committee to raise interest rates when it next meets on March 30.

At its last meeting on Feb. 2, the MPC left rates unchanged, saying its hikes of 800 basis points over the last year should help to tame inflation.

(Reporting by Nadine Awadalla; writing by Patrick Werr; editing by Himani Sarkar and Jason Neely)

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