Inflation declines for third consecutive month in June

Annual inflation declined for the third consecutive month, reaching 12.2% in June, approaching the levels recorded before the outbreak of the US war on Iran. However, the renewed fighting in recent days could reignite global inflationary pressures this month.

Monthly inflation was recorded at negative 0.9% in June, compared with to 1.4% in May.

In a statement issued Thursday, the Central Agency for Public Mobilization and Statistics (CAPMAS) said prices for the meat and poultry group fell by 6.4% in June compared with May, while prices for dairy products and eggs declined by 2.4%, and vegetable prices dropped by 12.1% over the same period.

Annual inflation had risen by around 2 percentage points in March to reach 13.5%, driven by the global inflationary wave triggered by the US war on Iran that month. The conflict affected several sectors, particularly energy prices, after the movement of oil shipments through the Strait of Hormuz was disrupted.

However, as efforts to reach an agreement to end the war gathered pace, inflation eased over the following two months. But the recent resumption of clashes between the US and Iran has once again raised the specter of inflation, with Brent crude futures rising in recent days from $71.9 per barrel on July 6 to $77.6 today.