Egypt: Inflation accelerates in August
September 15, 2018
In August, urban consumer prices rose 1.78% from the previous month, less than July’s 2.43% increase. August’s increase was driven by more expensive fresh fruit and vegetables. Moreover, higher prices for regulated items, particularly natural gas for housing, contributed to increased consumer prices in August compared to July.
Urban inflation accelerated to 14.2% in August from 13.5% in July. Urban core inflation accelerated to 8.8% in August from 8.5% in July. Meanwhile, annual average inflation decelerated to 18.0% in August from 19.3% in July.
Egypt Inflation Forecast
Looking ahead, inflation should resume its downward trend as the impact of recent reform measures reduces. FocusEconomics Consensus Forecast participants expect inflation to average 14.0% in calendar year 2018, which is down 0.3 percentage points from last month’s forecast, and 12.0% in calendar year 2019, which is also down 0.3 percentage points from last month’s forecast.
Author: Edward Gardner, Economist