Egypt witnessed in August a remarkable surge in its annual urban consumer price inflation rate. The rate climbed to a record-breaking 37.4 percent, surpassing expectations and marking a significant increase from the previous month’s rate of 36.5 percent. This data was revealed by Egypt’s statistics agency CAPMAS.
Both July and June experienced all-time high headline inflation rates. In July, the headline inflation reached 36.5 percent, while in June, it stood at 35.7 percent.
Rapid growth in money supply over the past two years has resulted in a steep climb in prices, prompting three devaluations since March 2022. This phenomenon has adversely affected the living standards of many Egyptians, leading to a decline in their overall quality of life.
According to Egypt’s Central Bank, core inflation, which excludes volatile items such as food and fuel, showed a slight decrease. It eased from 40.7 percent in July and 41 percent in June to 40.4 percent in the current period.Â
As per CAPMAS, the month-on-month price increase in August was 1.6 percent, which is a slight decrease from the 1.9 percent recorded in July and the 2.08 percent in June.
Read more: Egypt inflation forecast: New all-time high expected in August
Allen Sandeep, an analyst at Naeem Brokerage, shared his perspective. He expressed that the slight decline in month-on-month prices could be seen as a tentative indication. This suggests that prices are stabilizing and consolidating at their current levels.
Significant increases
Analysts reported notable price changes in Egypt. Vegetable prices saw a significant month-on-month increase of 21.6 percent. Additionally, tobacco product prices rose by 5.8 percent. On the other hand, meat prices observed a decline of 2.5 percent, and prices of bread and cereals decreased by 1.1 percent.
Upward trajectory
According to the median forecast of 14 polled analysts, it was anticipated that the annual urban consumer inflation would rise to 37.1 percent in August. The projection indicated an upward trajectory in inflationary pressures. Moreover, the previous highest inflation rate of 32.95 percent was recorded in July 2017. This highlights that the current inflation levels have surpassed that previous peak.
For more news on the economy, click here.
