Egypt's annual urban consumer inflation slowed unexpectedly to 14.9 percent in April, down from 15.2 percent in March, according to official data. On a monthly basis, prices rose 1.1 percent, while food and beverage prices fell 0.7 percent compared with March, though they remained 6.7 percent higher than a year earlier.

The easing came despite geopolitical tensions that pushed up electricity costs, weakened the currency, and increased commodity prices, particularly poultry. Inflation has declined sharply from its record 38 percent peak in September 2023, supported in part by an 8 billion dollar financial support package agreed with the International Monetary Fund in March 2024. However, price pressures may rise again after the government increased natural gas prices for energy intensive industries in early May.

At the same time, Egypt's net foreign assets fell by 6.07 billion dollars in March to 21.34 billion dollars, the steepest monthly drop since the outbreak of the conflict involving Iran. The decline reflects higher energy import costs, weaker tourism revenue, and significant portfolio investment outflows as foreign investors pulled back from emerging markets. Meanwhile, the country’s broad money supply expanded 20 percent year on year in March, reaching 15 trillion Egyptian pounds.