Egypt’s currency value has been cut in half since March 2022 as a result of the economic vulnerabilities that Russia’s invasion of Ukraine exposed. The government received a $3 billion package of financial aid from the International Monetary Fund (IMF) in December.

The previous inflation record of 32.952% was reached in July 2017, eight months after Egypt’s currency underwent a 50% depreciation as part of an earlier $12 billion IMF bailout program. The next meeting of the Monetary Policy Committee (MPC) is scheduled for May 18, and pressure is mounting on the central bank to increase its overnight interest rate. The high pace of inflation is to blame for this.

The rate of inflation declined in April, according to Capital Economics, an independent economic research firm located in London, as a result of stable exchange rates since January, falling global commodity prices, and beneficial base effects.

According to Capital Economics, April’s consumer pricing statistics will reveal that Egypt’s headline inflation rate slightly decreased to 31.4% year over year. “But it will pick back up in the coming months, and the lingering pressure presents a major upside risk,” it continued.