Egypt’s current inflation rate astounds a number of analysts.

In April, Egypt's annual urban consumer inflation dropped to 30.6%, above analyst expectations and indicating improvement. The decrease in inflation is a result of stable exchange rates, falling global commodity prices, and beneficial base effects. Following prior rate rises in an effort to contain inflation, the nation's central bank is under pressure to increase overnight interest rates as long as inflation is still high. Egypt's annual urban consumer inflation declined to 30.6% in April from 32.7% in March, which was less than analysts had projected, according to data issued on Wednesday by the government's statistics office, CAPMAS, as viewed by Reuters. Urban inflation dropped from 6.5% in February to 1.7% in March, a month-over-month reduction. The increase in inflation over the prior year was caused by a series of currency devaluations that started in March 2022, a lengthy foreign currency shortage, and persistent import delivery delays. The average forecast made by the 13 analysts surveyed indicated that annual urban consumer inflation would drop to 31.0% in April. 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. The MPC raised rates by 200 basis points (bps) to help contain inflation at its most recent meeting on March 30, bringing the deposit rate to 18.25%. It has risen by a total of 1,000 bps since March 2022. OTHER STORIES Ethiopia surpasses Tanzania to become the top investment location in Kenya. The EPA will close churches that lack a permission to operate. Oral s3x users are more likely to develop throat cancer, according to a study. The Akufo-Addo government’s galamsey battle is a hoax, according to the Minority Leader Boeing warns of 737 Max delays over quality problem