The Central Agency for Public Mobilization and Statistics (CAPMAS) revealed that the annual urban inflation in Egypt declined to 6.3% in October 2021, compared to 6.6% in September 2021, while the monthly urban inflation increased to 1.5% compared to 1.1%.
The agency said, in its monthly report on inflation, issued Wednesday, that the general consumer price index for the country recorded 118 points for October 2021, an increase of 1.7% from September 2021.
The agency attributed this rise to the increase in the prices of the meat and poultry by 6.6%; dairy, cheese, and eggs by 3.3%; fish and seafood by 1.9%; cereal and bread by 1.4%, housing rent by 0.4%; and transportation by 1.8%.
The prices of newspapers, books and stationery also increased by 13.1%, pre-primary and basic education by 19.5%, higher education by 16.7%, general and technical secondary education by 5.3%, and ready-made meals by 0.6%.
On the other hand, the prices of fruits and vegetables decreased by 6.4% and 4.8%, respectively.
According to the agency, the annual inflation recorded 7.3% in October 2021, compared to 8.0% in September, and 4.6% in October 2020.
Monthly core inflation, computed by CBE, recorded 2.1% in October 2021, compared to 1.7% in October 2020, and 0.4% in September 2021. Accordingly, the annual core inflation recorded 5.2% in October 2021, compared to 4.8% in September 2021.
The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) decided, at its meeting held on 28 October 2021, to maintain the overnight deposit and lending rates at 8.25% and 9.25%, respectively; as well as maintain the credit and discount rate and the price of the main operation of CBE at the level of 8.75%.
The committee said that this level of basic interest rates at CBE is appropriate at the present time, and it is also consistent with achieving the target inflation rate of 7% (±2%) on average during the fourth quarter of 2022, and price stability in the medium term.