Egypt’s annual headline inflation displayed a notable decrease, registering 38.5 percent inflation in October – a drop from September’s 40.3 percent, its highest-ever level.
The latest data, released by the Central Agency for Public Mobilization and Statistics (CAPMAS) on 11 November, highlighted various factors contributing to this positive trend.
Essential goods, such as grains and bread, experienced a modest 0.6 percent decline in prices during October. Additionally, there was a significant 2.9 percent decrease in fruit prices during the same period.
Vegetable prices also went down by 2.5 percent, while alcoholic beverages and medical products experienced marginal drops of 0.1 percent each.
The agency underscored the stability observed in the prices of other goods as a key factor behind the October inflation decrease.
Despite this reduction, October 2023’s inflation remains considerably elevated compared to the same period in 2022, which stood at 16.2 percent, according to historical data from CAPMAS.
EGYPT’S ECONOMIC SITUATION
Taming inflation has been a central goal of the CBE’s monetary policy, which aligns with Egypt’s commitment to the International Monetary Fund under its approved USD 3 billion (EGP 68 billion at the time) four-year loan deal, which was signed in December 2022.
Inflation rates have been on an upward trajectory since Russia’s invasion of Ukraine in February 2022, which disrupted the global economy and supply chain.
To address rising inflation, the CBE increased Egypt’s key interest rates in August to 19.25 percent for the overnight deposit rate and 20.25 percent for the overnight lending rate.
The Monetary Policy Committee, which holds authority over interest rate adjustments at the CBE, is scheduled to convene its monthly meeting near the end of November to determine if another rate hike is necessary.
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