Egypt’s annual urban inflation decreased to 35.8% in October, down from 38% in September 2023, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).
CAPMAS said in a statement on Saturday that the overall consumer price index for the whole country reached 190.1 points for October 2023, reflecting an annual inflation rate of 38.5%, compared to 40.3% for September.
The agency attributed this decline to the lower prices of the grain and bread group by 0.6%, the fruit group by 2.9%, the vegetable group by 2.5%, the alcoholic beverages group by 0.1%, the products, devices, and medical equipment group by 0.1%, as well as the stable prices for postal services, telephone and fax services, and insurance services.
On the other hand, prices increased in the meat and poultry group by 5.6%, the fish and seafood group by 0.1%, the dairy, cheese, and egg group by 3.6%, the garments group by 0.5%, the actual rental group for housing by 0.6%, the household appliances group by 1.9%, and the glassware, tableware, and household tools group by 1.6%.
CAPMAS also reported a decrease in the monthly inflation rate for the whole country to 1.2% in October 2023, down from 2% in September.
On 2 November, the Central Bank of Egypt (CBE) decided to keep interest rates unchanged for the second time in a row, at 19.25% for deposits, 20.25% for lending, and 19.75% for credit, discount, and the main operation of the CBE.
The Monetary Policy Committee of the CBE, in its statement accompanying this decision, stated that global inflationary pressures have recently eased due to the tight monetary policies adopted by many major economies, in addition to the positive impact of the base year. Therefore, inflation expectations for those countries have declined despite remaining above the target levels.
The committee explained that, on the domestic front, the monthly changes in inflation during July, August, and September 2023 reflected the impact of unfavorable weather conditions that contributed to an increase in the seasonal rise in prices of agricultural products. It pointed out that the annual rate of core inflation slowed for the third consecutive month.
The committee affirmed that the path of the basic yield prices depends on expected inflation rates, not prevailing inflation rates. It indicated that it will continue to monitor economic developments as well as the risks surrounding inflation expectations. It will not hesitate to use all available monetary policy tools to maintain tight monetary conditions, to achieve the inflation targets of 7% (±2%) on average by the end of 2024 and 5% (±2%) on average by the end of 2026.
