According to reports released by the central bank on Sunday, Egypt’s annual core inflation increased to 40.3% in May from 38.6% in April.
Egypt’s inflation has increased significantly over the past year as a result of numerous currency devaluations, a protracted foreign currency shortage, and ongoing import delivery delays.
According to the report, it rose from 1.7% in April to 2.9% in May.
Egypt’s currency has lost half of its value since March 2022, when the effects of Russia’s invasion of Ukraine revealed Egypt’s economic weaknesses.
Egypt received a $3 billion Extended Fund Facility loan from the IMF in December. The loan will be paid back over 46 months.
Egypt also committed to selling public assets worth billions of dollars over the following four years as part of its December agreement with the IMF.
Since the agreement, there have been no significant sales, although the central bank increased overnight interest rates by 500 basis points.
In an IMF staff study released in December, it was stated that payments are subject to eight assessments, the first of which was scheduled for March 15, 2023.
The central bank figures come after data from statistics agency CAPMAS showed on Saturday that Egypt’s annual urban consumer inflation rate in May accelerated to 32.7% from 30.6% in April, approaching a record and higher than analysts had expected.
Month on month, urban inflation increased to 2.7% from 1.7% in April.
Meanwhile in Ghana, the International Monetary Fund approved a $3 billion, three-year loan package for Ghana on May 17, after nearly a year of negotiations.
According to the IMF, the package imposes tough conditions on the central bank, requiring it to cut inflation, end monetary financing and rebuild foreign.