Egypt Inflation Rate at 3-Month High

The annual urban inflation rate in Egypt edged up to 26.4% in September 2024 from 26.2% in the previous month, surpassing market expectations of 25.9%.

This marked the highest inflation rate since June and remaining well above the central bank's target range of 5-9%, delaying the anticipated timing of the country's first interest rate cut since 2020.

Recent inflation was partly driven 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.

Meanwhile, prices moderated for food and non-alcoholic beverages (29% vs 27.7% in August), alcoholic beverages, tobacco and narcotics (37.7% vs 39.9%), clothing and footwear (25.6% vs 26.8%), restaurants and hotels (46.5% vs 35.9%), and miscellaneous goods and services (21.5% vs 21.7%).

On a monthly basis, consumer prices stood at 2.1% in September 2024, unchanged from the previous month.