Egypt's annual headline inflation narrowed to 27.4% in May, compared to 31.8% in April, the Central Agency for Public Mobilization and Statistics (CAPMAS) announced on June 10th.

The inflation rate was driven by the increase of 28.9% in the food and beverage segment as prices of red meat and poultry rose by 26.6% in May.

Moreover, the prices of the alcoholic beverage and tobacco segment saw an 83.4% year-on-year (YoY) surge last month, and prices of the culture and entertainment segment increased by 58.3% YoY.

In addition, the prices of the restaurants and hotels segment were 33.3% higher than in April, while the furniture and home appliances segment registered a 30.7% YoY rise in prices.

However, the monthly inflation rate recorded -0.8% in May as compared to April, marking the first decline since June 2022, with the consumer price index (CPI) recording 221.8 points.

It is worth mentioning that Egypt's annual headline inflation rate climbed to 33.7% in May 2023.