Egypt’s headline inflation rate increased to 32.7 percent in March

Egypt’s annual urban consumer inflation rate in March climbed to 32.7 percent year-on-year, just shy of an all-time record, from 31.9 percent in February, data from the country’s statistics agency CAPMAS showed on Monday.

The surging inflation rate follows a series of currency devaluations starting in March 2022, a prolonged shortage of foreign currency and continuing delays in getting imports into the country.

Egypt, which secured a $3 billion financial support package from the International Monetary Fund in December, has devalued its currency by half since March 2022 after fallout from Russia’s invasion of Ukraine exposed vulnerabilities in Egypt’s economy.

The median forecast of 13 analysts polled showed annual urban consumer inflation rising to 33.6 percent in March.

Egypt’s highest inflation rate ever was 32.952 percent, reached in July 2017, eight months after Egypt devalued its currency by half as part of a previous $12 billion IMF support package.

The core inflation rate, which excludes fuel and some volatile food items, is expected to be released later on Monday. The median of the analysts’ forecasts expect that to climb to a record 42.25 percent from February’s 40.26 percent, the current record.