Data from the Central Bank of Egypt showed on Sunday that Egypt's annual core inflation rate rose to 40.3% in May from 38.6% in April.
The data also showed that core inflation increased by 2.9% on a monthly basis in May from 1.7% in April.
The government reached an agreement with the International Monetary Fund in December to obtain a $3 billion financial support package.
Meanwhile, figures from the Central Agency for Public Mobilization and Statistics revealed that consumer price inflation in Egyptian cities accelerated to 32.7% in May from 30.6% in April, higher than analysts' expectations and close to its highest level ever.
On a monthly basis, inflation in cities increased to 2.7% in May compared to 1.7% in April.
The rise in inflation comes despite Egypt's efforts to reduce subsidies, float the pound, and implement structural reforms as part of its IMF-backed economic reform program. However, higher global commodity prices, domestic supply disruptions, and the Russian-Ukraine war have put pressure on inflation.
The Central Bank of Egypt has been raising interest rates to tackle inflation, hiking rates by 200 basis points in May to 11.25%. However, inflation continues to outpace interest rates, eroding the purchasing power of Egyptians.
