However, December's inflation rate remains significantly higher than the 21.9 percent recorded in December 2022.

The latest inflation reading surpasses the target set by the Central Bank of Egypt (CBE), which aims to keep inflation within seven percent (±2 percent) by the end of 2024.

CAPMAS attributes the decline in December's inflation to a 1.7 percent decrease in the prices of meat and poultry.

The agency stated that the prices of grains and bread rose by 4.5 percent, while dairy, cheese, and eggs saw a 1.7 percent increase.

Additionally, the prices of oils and fats experienced a 2.8 percent rise, fruits saw a four percent surge, and a group of vegetables witnessed a 5.3 percent increase in prices.

This marks the third consecutive month of declining inflation rates following a period of steadily increasing rates throughout 2023. The inflation rate peaked in September at 40.3 percent before beginning its downward trend in October.

Despite the decline in inflation, experts pointed out that prices continue to rise due to various factors, including the pricing of goods and services based on the USD exchange rate in the black market rather than the official exchange rate in banks, which has led to inflated prices.

To address these challenges, Egypt is intensifying its efforts to control prices and reduce inflation. The country has recently launched a price reduction initiative and directed regulatory authorities to tighten control over the market.

In late December, Egypt designated seven essential food items -- mixed oil, beans, rice, milk, sugar, pasta, and white cheese -- as strategic commodities, to regulate prices in the market in cooperation with the private sector.

Last week, Prime Minister Mostafa Madbouly highlighted the country's target of reducing inflation to below 10 percent by 2025.

In 2024, Egypt’s average inflation is expected to decreased to 27.4 percent from 34.1 percent in 2023, according to a report by BMI Research, a subsidiary of Fitch Solutions.

On Tuesday, the World Bank (WB) shed light on the external factors influencing Egypt's inflation problem, highlighting the negative impacts of the conflict in the Middle East, which will exacerbate inflation in the country in 2024.

The ripple effects are felt through “eroding households’ purchasing power, constraining activity in the private sector, and intensify pressures on external accounts through implications on tourism, remittances, and oil trade balance,” the WB added.