Egypt’s annual urban consumer inflation eased slightly to 11.7% in September from 12% in August, according to data released on Wednesday by the country’s statistics agency, CAPMAS. The slowdown was smaller than analysts had forecast, with a Reuters poll of 15 economists projecting a decline to 11%.
On a monthly basis, consumer prices rose by 1.8% in September. Food and beverage prices, a key component of the consumer basket, increased by 2% month-on-month and 1.4% year-on-year, CAPMAS reported.
The annual inflation rate has dropped sharply from a record high of 38% in September 2023. The decline has been supported by Egypt’s $8 billion financial assistance package from the International Monetary Fund (IMF), secured in March 2024, as well as tighter monetary conditions that have slowed money supply growth.
Central bank data showed that Egypt’s M2 money supply grew by 22.88% year-on-year in August — a moderation compared to earlier months following the IMF deal.
With inflation continuing to ease, the Central Bank of Egypt cut its overnight lending rate by 100 basis points on October 2, after a 200-basis-point reduction in late August. These were the third and fourth rate cuts of the year, reflecting growing confidence in Egypt’s efforts to stabilize its economy and curb price pressures.
Source:Africa Publicity
