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Egypt Inflation Rate Eases from 4-Month High
The annual urban inflation rate in Egypt slowed to 33.3% in March 2024, from a four-month high of 35.7% in the previous month and missing market forecasts of 36.3%. Downward pressure mainly came from food (45% vs 50.9% in February), transport (16.2% vs 17.6%) add housing (9.7% vs 10%). Meanwhile, Cairo metro ticket prices saw an increase of up to 20%, while internet service fees surged by as much as 33%, and electricity tariffs rose by up to 26%. However, to mitigate the impact of these price hikes and address the pressing cost of living crisis, the government also introduced a substantial 50% raise in the minimum wage, setting it at 6,000 Egyptian pounds, effective from March. On a monthly basis, consumer prices rose 1% in March, sharply decelerating from 11.4% in the prior month.
Published on 2024-04-08

Egypt Inflation Rate at 4-Month High
The annual urban inflation rate in Egypt accelerated for the first time in five months to 35.7% in February 2024 from January's 12-month low of 29.8% and far above forecasts of 25.1%. It was the highest inflation rate since last October, with food prices soaring by 50.9%, transport (17.6%) and housing by 10% after the government increased Cairo metro ticket prices by up to 20% in January, internet services (33%), and electricity prices (26%). The government also announced a 50% hike to the minimum wage to 6,000 pounds to take effect in March, with salaries to be raised by a minimum of 1,000 to 1,200 Egyptian pounds to address the cost of living crisis. Last Tuesday, Egypt's central bank raised interest rates by 600 bps, following a 200 bps hike in February, to accelerate the monetary tightening process to fast-track the disinflation path and ensure a decline in underlying inflation. Monthly, CPI surged by 11.4% in February, the highest on record, jumping from a 1.6% rise in January.
Published on 2024-03-10

Egypt Inflation Rate Slows to 1-Year Low, Below Forecasts
The annual urban inflation rate in Egypt eased for the fourth consecutive month to a one-year low of 29.8% in January 2024 from 33.7% in December, falling below market expectations of 32.5%. However, it remains well above the upper limit of the central bank's target range of 5-9%. Monthly, consumer prices inched up by 1.6% in January, the most in five months, after a 1.4% rise in the prior month. The government in January increased the price of Cairo metro tickets by up to 20%, internet services by as much as 33% and electricity prices by as much as 26%. Meanwhile, Egyptian President Abdel Fattah al-Sisi announced a 50% raise to the minimum wage to 6,000 pounds to take effect in March, as part of a 180 billion pound "urgent social protection package". He additionally ordered all government monthly salaries to be raised by a minimum of 1,000 to 1,200 Egyptian pounds to address the cost of living crisis.
Published on 2024-02-08

Egypt Inflation Rate at 7-Month Low
The annual urban inflation rate in Egypt slowed for the third consecutive month to 33.7% in December 2023 from a six-month low of 34.6%, slightly above market expectations of 33.4% and remaining significantly above the upper limit of the central bank's target range of 5-9%. It also marked the lowest inflation rate since May, mainly influenced by a slowdown in food inflation (60.5% vs 64.5% in November), housing & utilities (6.7% vs 7%), furnishings, household equipment, & routine maintenance (36.7% vs 38.1%), health (14.3% vs 14.9%), and miscellaneous goods & services (26% vs 26.3%). Meanwhile, prices remained unchanged for transport (14.9%), while increased at a faster pace for recreation & culture (23.6% vs 19.2%). On a monthly basis, consumer prices edged up to 1.4% in December from 1.3% in the previous month.
Published on 2024-01-10

Egypt Inflation Rate Eases to 6-Month Low
The annual urban inflation rate in Egypt decreased for the second straight month to a six-month low of 34.60% in November 2023 from 35.8% in October, after hitting a record high in September of 38.0%, remaining significantly above the upper limit of the central bank's target range of 5-9%, but below market forecasts of 34.8%. The reading came amid a slowdown in food inflation to a six-month low ((64.5% vs 71.3% in October). Monthly, consumer prices rose by 1.3%, accelerating from a 1.0% rise in October, which was the softest in 14 months. Meanwhile, Egypt's annual core inflation rate, which excludes volatile items such as food, slowed to a ten-month low of 35.9% in November, down from 38.1% in October.
Published on 2023-12-10

Egypt Inflation Rate Eases to 35.8% in October
The annual urban inflation rate in Egypt slowed to 35.80% in October 2023 from a record high of 38.0% in September, remaining significantly above the upper limit of the central bank's target range of 5-9%, compared to market forecasts of 37.1%. The reading came amid a slowdown in food inflation ((71.3% vs 73.6% in September) due to falls in prices of grains, bread, fruit, and vegetables, while the prices of other goods remained stable. Additionally, Egypt's annual core inflation rate, which excludes volatile items such as food, eased to a nine-month low of 38.1% in October, down from 39.7% in September but above market forecasts of 37.2%. On a monthly basis, consumer prices were up by 1.0%, the least in 14 months, slowing from a 2.0% rise in September.
Published on 2023-11-12

Egypt Inflation Rate Hits All-Time High
The annual urban inflation rate in Egypt accelerated to 38% in September 2023, up from 37.4% in the previous month, remaining significantly above the upper limit of the central bank's target range of 5-9% and above market forecasts of 37.6%. This marked the highest inflation rate since records commenced in 1958, primarily due to a low base effect and soaring food prices (73.6% vs 71.4% in August), as the country continues to face a severe foreign-currency crisis. Largest price hikes also came from alcoholic beverages & tobacco (55.1%), hotels & restaurants (43%) and furnishing (38.1%). On a monthly basis, consumer prices rose by 2%, the highest in three months, following a 1.6% hike in August. Additionally, Egypt's annual core inflation rate, which excludes volatile items such as food, eased to a five-month low of 39.7% in September, down from 40.4% in August and below market forecasts of 40.2%.
Published on 2023-10-10

Egypt Inflation Rate Rises to Record High
The annual urban inflation rate in Egypt rose to 37.4% in August 2023, up from 36.5% in the previous month, remaining significantly above the central bank’s target range of 5-9% and compared with market expectations of 37.1%. It marked the highest level since records began in 1958, due to a low base effect and the further rise in food inflation (71.4% vs 68.4% in July), compounded by economic pressures, shortage of foreign currency and successive devaluation of Egyptian pound. On a monthly basis, the CPI grew 1.6%, down from a prior 1.9% rise and pointing to the softest growth since September 2022.
Published on 2023-09-10

Egypt Inflation Rate Hits Record High
The annual urban inflation rate in Egypt accelerated to 36.5% in July 2023, up from 35.7% in the previous month, remaining significantly above the upper limit of the central bank's target range of 5-9% and consistent with market forecasts. This marked the highest inflation rate since records commenced in 1958, driven by a low base effect and soaring food prices (68.4% vs 65.9% in June), as the country continues to grapple with a debilitating foreign-currency crunch. Largest price hikes also came from alcoholic beverages & tobacco (52.3%), hotels & restaurants (48.8%) and furnishing (40.3%). Additionally, Egypt's annual core inflation rate, which excludes volatile items such as food, eased to 40.7% in July, down from 41% in June and below market forecasts of 41.25%. On a monthly basis, consumer prices slowed to 1.9%, the lowest in three months, following a 2.1% increase in June.
Published on 2023-08-10

Egypt Inflation Rate Hits All-Time High
The annual urban inflation rate in Egypt further increased to 35.7% in June 2023, up from 32.7% in the previous month and still well above the upper limit of the central bank's 5-9% target range. It was the sharpest inflation rate since records began in 1958, driven by a low base effect and amidst skyrocketing food prices (65.9% vs 60% in May), further exacerbated by the Muslim feast holiday and increased summer spending. Concurrently, Egypt recently raised prices on certain subsidized commodities such as rice and sugar. The annual core inflation rate, which excludes variable items such as food, accelerated to a record high of 41% in June from 40.3% in May and above market forecasts of 40%. On a monthly basis, consumer prices slowed to 2.1%, following a 2.7% increase in the previous month.
Published on 2023-07-10

Egypt Inflation Rate Above Forecasts in May
The annual urban inflation rate in Egypt accelerated to 32.7% in May 2023, up from 30.6% in April and staying well above the upper limit of the central bank’s 5-9% target range. Figures came above market forecasts of 31.4%, as the country continues to struggle with price increases and currency depreciation. Prices rose sharply for food (60.0% vs 54.7% in April) and transportation (24.9% vs 19.1%), as authorities recently raised the prices of some subsidized commodities such as rice and sugar and sharply raised domestic diesel prices. On a monthly basis, consumer prices climbed 2.7% in May, after a 1.7% rise in the previous month.
Published on 2023-06-10

Egypt Inflation Rate Eases for 1st Time in 9 Months
The annual urban inflation rate in Egypt eased for the first time in nine months to 30.6% in April 2023 from 32.7% in the previous month and below market forecasts of 31%, mainly due to softer rises in food inflation (54.7% vs 62.9%). Still, the figure remained well above the upper limit of the central bank’s 5-9% target range, amid the recent plunge of the currency. Cost also slowed for housing & utilities (8% vs 8.3%) and transport (19.1% vs 20.2%). Meanwhile, Egypt's annual core inflation rate, which excludes volatile items such as food, eased slightly to 38.6% in April from 39.5% in the previous month. On a monthly basis, consumer prices rose 1.7%, the lowest in seven months, after a 2.7% hike in the previous month.
Published on 2023-05-10

Egypt Inflation Rate at Near 6-Year High
The annual urban inflation rate in Egypt rose to 32.7% in March 2023 from 31.9% in the previous month, but below market forecasts of 33.6%. It was the highest inflation rate since July 2017 following a series of currency devaluations that started in March 2022. The biggest upward pressure came from prices of food & non-alcoholic beverages (62.9% vs 61.8% in February), by far the most relevant in the CPI basket, amid the recent plunge in the currency and rising demand around the holy month of Ramadan. Egypt's annual core inflation rate, which strips out volatile items such as food, eased to 39.50% in March, from a record 40.26% in the prior month, while markets had expected it to accelerate further to 42.25%. On a monthly basis, consumer prices advanced 2.7%, easing sharply from a 6.5% gain in February.
Published on 2023-04-10

Egypt Inflation Rate Highest in Nearly 6 Years
The annual urban inflation rate in Egypt further accelerated to 31.9% in February 2023, from 25.8% in the previous month, and well above market expectations of 26.9%. It was the sharpest inflation rate since August 2017, staying above the upper limit of the central bank’s 5-9% target range for one year, largely due to a weaker pound after a series of devaluations in recent months. Main upward pressure came from prices of food & non-alcoholic beverages (61.8% vs 48% in January), by far the most relevant in the CPI basket. The annual core inflation rate, which strips out volatile items such as food, jumped to 40.26% in February 2023, the hottest reading since at least January of 2005, up from 31.24% in the prior month. On a monthly basis, consumer prices rose 6.5% in February, the most since October 1989, from 4.7% in the previous month.
Published on 2023-03-09

Egypt Inflation Rate Beats Estimates
The annual urban inflation rate in Egypt climbed for the seventh straight month to 25.8% in January 2023, from 21.3% in the previous month and beating market expectations of 23.8%. This was the highest reading since December 2017, sending inflation above the upper limit of the central bank’s 5-9% target range for the eleventh straight month, amid a falling currency due to a series of devaluations starting in March 2022, foreign currency shortages and delays in imports. Main upward pressure came from prices of food & non-alcoholic beverages (48% vs 37.9% in December 2022), by far the most relevant in the CPI basket. Egypt's government announced in late January that would start selling discounted bread to people not enrolled in its bread subsidy program in an attempt to bring down food prices. The annual core inflation rate jumped to an over five-year high of 31.24% in January 2023. On a monthly basis, consumer prices rose 4.7%, the most since November 2016.
Published on 2023-02-09

Egypt Inflation Rate Highest in 5 Years
The annual urban inflation rate in Egypt accelerated to 21.3% in December of 2022, from 18.7% in the previous month, and above market expectations of 20.9%. It was the highest reading since December of 2017, staying well above the upper limit of the central bank’s 5-9% target range for the tenth consecutive month. Main upward pressure came from prices of food & non-alcoholic beverages (37.9% vs 30.9%). On a monthly basis, consumer prices climbed 3.16%, the most in eight months, and up from a 2.6% increase in November. The central bank of Egypt allowed the Egyptian pound to depreciate by about 14.5% on October 27th and progressively continue to weaken in November and December amid a foreign currency shortage.
Published on 2023-01-10

Egypt Inflation Rate Hits Near 5-Year High
The annual urban inflation rate in Egypt accelerated to 18.7% in November of 2022, from 16.2% in the previous month and almost in line with market expectations of 18.8%. It was the highest reading since December of 2017, sending inflation above the upper limit of the central bank’s 5-9% target range for the ninth straight month, amid the ongoing depreciation of the Egyptian pound and supply shortages. Main upward pressure came from prices of food & non-alcoholic beverages (30.9% vs 23.9% in October), by far the most relevant in the CPI basket. On a monthly basis, consumer prices were up 2.6% in November, from a 2.5% increase in the previous month.
Published on 2022-12-08

Egypt Inflation Rate Highest in 4 Years
The annual urban inflation rate in Egypt rose to 16.2% in October of 2022 from 15.0% in the previous month, above market expectations of 15.6%. This was the highest reading since October 2018, taking inflation above the upper limit of the central bank’s 5-9% target range for the eighth straight month amid surging global commodity prices and devaluation of the local currency. The main upward pressure came from prices of food & non-alcoholic beverages (23.9% vs 21.7% in September). On a monthly basis, consumer prices climbed 2.5%, the most in six months, accelerating from a 1.6% gain in September.
Published on 2022-11-10

Egypt Inflation Rate at Near 4-Year High of 15%
The annual urban inflation rate in Egypt accelerated to 15.0% in September of 2022 from 14.6% in the previous month and above market expectations of 14.7%. It was the highest reading since November 2018, bringing inflation above the upper limit of the central bank’s 5-9% target range for the seventh straight month amid surging global commodity prices and devaluation of the currency. Main upward pressure came from prices of food & non-alcoholic beverages (21.7% vs 23.1% in August). On a monthly basis, consumer prices climbed 1.6%, the most in five months, accelerating from a 0.9% gain in August.
Published on 2022-10-10

Egypt Inflation Rate Beats Estimates
The annual urban inflation rate in Egypt increased to 14.6% in August of 2022 from 13.6% in the previous month and beating market expectations of 14.4%. It was the highest reading since November 2018, sending inflation above the upper limit of the central bank’s 5-9% target range for the sixth straight month amid soaring global commodity prices and devaluation of the currency. Main upward pressure came from prices of food & non-alcoholic beverages (23.1% vs 22.4% in July). Also, a recent hike in fuel costs contributed to the overall inflation. On a monthly basis, consumer prices rose 0.9%, easing from a 1.3% gain in July.
Published on 2022-09-08