Cairo, Egypt – Egypt’s annual urban consumer price inflation rate eased slightly in November, reaching 25.5% from 26.5% in the previous month, according to data released by the Central Agency for Public Mobilization and Statistics (CAPMAS) on Tuesday.

The country’s inflation rate has been on a steep rise since early 2022, primarily due to the economic fallout from the Russia-Ukraine war. This geopolitical conflict led to significant capital flight from Egyptian treasury markets, further exacerbating inflationary pressures.

While inflation peaked at a record high of 38% in September 2023, it has gradually declined since then. The median forecast of analysts polled by Reuters had predicted a marginal decrease to 26.4% in November.

On a monthly basis, headline inflation rose by a more moderate 0.5% in November, compared to the 1.1% increase in October. Notably, food prices, a major contributor to inflation, declined by 2.8% month-over-month, a significant slowdown from the previous month’s 1.1% decrease. However, food prices remain elevated, up 23.3% year-on-year.

The expansion of the money supply has been a key driver of inflation. Egypt’s M2 money supply increased by 29.54% year-on-year in October, according to central bank data.