The Central Agency for Public Mobilization and Statistics (CAPMAS) announced that Egypt’s inflation rate has maintained its downturn for the fourth consecutive month, dropping to 28.15% in May from 32.54% in April.

Egypt’s year-on-year inflation has fallen below 30% for the first time since January, according to official figures released Monday, as the North African country recovers from its worst economic crisis in over 50 years.

The Central Agency for Public Mobilization and Statistics (CAPMAS) announced that Egypt’s inflation rate maintained its downturn for the fourth consecutive month, dropping to 28.15% in May from 32.54% in April.

May’s inflation rate was the first below 30% since January. May 2023’s rate was 32.75%.

CAPMAS said the decline in May 2024 was due to lowering bread and cereal prices by 2.5%, poultry and meat by 4.6%, oils and fats by 3% and other food by 1.7%. Overall, food and beverage prices dropped by 3.1% compared to April.

Urban inflation fell to 28.1% for May compared to 32.5% in April. It was the first time urban inflation had fallen below 30% since January 2023, when it was at 25.8%.

Egypt is going through its worst economic crisis in over half a century, with a foreign currency shortage and the sharp devaluation of the Egyptian pound.

However, in March, the North African country expanded a package from the International Monetary Fund from $5 billion to $8 billion. As part of the conditions of the funding, Egypt has made significant economic reforms, including floating the Egyptian pound.

There has also been foreign investment from the United Arab Emirates to the tune of $35 billion as part of a deal to develop the Mediterranean coastal resort of Ras Al Hikma in February. The European Union, United Kingdom and World Bank have also provided financial packages to Egypt in 2024.

On Monday, investment bank Goldman Sachs forecasted Egypt’s inflation to drop to 10% by the end of June 2025, the Arab World Press Agency reported.

Goldman said that the declining inflation was in part due to the narrowing gap between the official and black-market exchange rates and the gradual easing of supply chain bottlenecks. The bank envisions further easing of inflation through 2025 in Egypt.