Egypt Inflation Rate Rises to 26.5% in October

Egypt Inflation Rate Rises to 26.5% in October

Egypt’s inflation rate rose to 26.5% in October 2024 from September’s 26.4%, the Central Agency for Public Mobilization and Statistics (CAPMAS) announced on Sunday. The consumer price index growth marked the highest inflation rate since June and remained well above the central bank’s target range of 5-9%. 

Recent inflation was partly boosted by sharp fuel hikes of 10-15% in late July, followed by a 25-33% surge in metro ticket prices at the start of August, and a spike in electricity tariffs of 21-31% over August and September.

On a monthly basis, consumer prices rose 1.1% in October 2024, the least in three months, after a 2.1% gain in September.

While Egypt’s annual headline inflation continued its upward trend for the third consecutive month, rising to 26.3 percent in October compared to 26 percent in September, the monthly headline inflation decreased to 1.5 percent, down from 2.3 percent in September, the Central Agency for Public Mobilization and Statistics (CAPMAS) announced on Sunday.

The food and beverage sector was notably affected, with a year-over-year price surge of 26.9%, encompassing a dramatic 36.7% increase in meat prices. Other key items like dairy, grains, and eggs also saw significant price hikes, reflecting their crucial role in household expenditures.

In October, meat and poultry prices witnessed a monthly rise of 3.3%, while fish and seafood prices climbed by 2.1%. Dairy products and eggs saw a more modest increase of 1.2%.

Energy and housing maintenance costs also surged, with a notable 7.2% jump, driven by higher electricity, gas, and fuel prices. Healthcare costs rose by 3.5%, spurred by increasing outpatient service fees and hospital expenses.

The clothing and footwear sector reported an annual price hike of 24.4%, while healthcare services recorded a 31.3% surge. Prices in the restaurant and hotel industry saw a significant 30.8% increase year-on-year. Earlier last week, Egypt’s Prime Minister, Mostafa Madbouly, assured that there would be no tax increases.

In a recent meeting with parliamentary leaders, Madbouly highlighted the government’s strategy to implement tax incentives aimed at boosting investment. He reiterated the administration’s dedication to pursuing economic reforms despite the difficulties involved.

Madbouly emphasized that these reforms would incorporate social protection measures to assist eligible citizens.# Egypt Inflation Rate Rises to 26.5% in October. #Egypt Inflation Rate Rises to 26.5% in October CBN Defends Naira with $39m in Forex Market