Egypt’s annual urban headline inflation edged up to 26.5 percent in October from 26.4 percent in September, remaining broadly stable for the third consecutive month. The Central Bank of Egypt recently revealed that the primary driver behind headline inflation continues to be non-food inflation, which rose to 26 percent in October 2024 compared with 25.5 percent in September 2024.
Meanwhile, Egypt’s annual rural headline inflation recorded 26.1 percent in October 2024 compared with 25.6 percent in September 2024. Similarly, annual nationwide headline inflation increased to 26.3 percent in October 2024, up from 26 percent in September 2024.
Monthly urban headline inflation dips
Egypt’s monthly urban headline inflation recorded 1.1 percent in October 2024, compared with 1 percent in October 2023, and 2.1 percent in September 2024. The central bank said that monthly headline developments reflect the impact of administered prices on non-food items, higher core food prices, and a seasonal decline in the prices of fresh fruits and vegetables.
In line with their seasonal pattern, prices of fresh fruits and vegetables declined by 2.3 percent and 1.1 percent, respectively. Together they contributed negative 0.11 percentage points to Egypt’s monthly headline inflation. Meanwhile, prices of poultry and eggs increased by 6.7 percent and 3.5 percent, respectively. Together they contributed 0.42 percentage points to monthly headline inflation.
Prices of other core food items including unsubsidized bread, red meat, market sugar, pulses, confectionary, and market tea, contributed 0.08 percentage points to monthly headline inflation. Meanwhile, prices of regulated items increased by 1.3 percent, contributing 0.27 percentage points to monthly headline inflation. This is mainly attributed to the recent price increase in LPG and pharmaceutical products but does not account for the recent fuel price increase announced on October 18, which will be reflected in the November inflation data.
Food inflation hits two-year low
Inflation in October 2024 reflects the increase in administered prices across Egypt, as well as the increased prices of services such as rents, and expenditures on restaurants and cafes. Meanwhile, annual food inflation continued to decelerate, reaching 27.3 percent in October 2024, the lowest rate in two years. The central bank attributed this steady decline to the gradual easing of shocks and a favorable base effect from the high food inflation in 2023.
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Core inflation declines
Meanwhile, Egypt’s annual core inflation declined to 24.4 percent in October 2024 compared with 25 percent in September 2024, while monthly core inflation registered 1.3 percent in October 2024 compared with 1.8 percent in October 2023. Month-on-month, Egypt’s core inflation rose 0.3 percent to 1.3 percent compared to 1 percent in September 2024. Monthly core developments reflect higher prices of core food items, especially poultry, eggs, dairy, and seafood.
