Egypt’s inflation at historic high in September, breaks 2017 record

Egypt’s annual urban consumer price inflation rose to a historic high of 38 per cent in September, climbing from 37.4 per cent in August and topping analyst expectations, data from statistics agency CAPMAS showed on Tuesday.

It was the fourth consecutive month of record highs recorded on the central bank website, which has figures going back to 2000, with food and drink prices leading the rise.

The median forecast of 18 analysts polled this week had shown annual urban consumer inflation rising to 37.6 per cent in September.

Egypt inflation breaks 2017 record

The previous high, before inflation soared in June, was 32.95 per cent recorded in July 2017.

Inflation also accelerated on a monthly basis, with prices rising by 2.0 per cent compared with a 1.6 per cent increase in August, Allen Sandeep of Naeem Brokerage said.

It was their fastest pace of increase since June.

Rapid money supply growth over the last two years has helped prices to climb rapidly and the currency to lose almost half its value against the US dollar since March 2022.

Many Egyptians have seen their living standards slide.

In September food and beverages climbed month-on-month by 3.6 per cent, with vegetable prices surging by 19.2 per cent, fruits by 5.4 per cent, dairy products by 5.4 per cent and sugar items by 2.9 per cent, Sandeep added.

Seeking to fight food inflation, the government said on Monday it had agreed with private producers and retailers to cut prices on staple foods by 15-25 per cent and exempt them from customs duties for six months.

Core inflation, which strips out volatile items like food and fuel, retreated to 39.7 per cent from 40.4 per cent in August, the central bank said.