Egypt: Inflation climbs further in October
November 16, 2015
In October, consumer prices increased 2.2% over the previous month, which followed the 2.5% increase recorded in September. According to the Central Agency for Public Mobilization and Statistics, the increase was mainly driven by higher prices for food and non-alcoholic beverages.
Inflation climbed from 9.2% in September to 9.7% in October. The government’s decision to cut energy subsidies in July of last year continues to have an effect on prices. The cut in energy subsidies was part of an ongoing fiscal reform program designed to reduce the large fiscal deficit. A shortage of foreign currency is also driving up the cost of imported goods. Meanwhile, annual average inflation decreased from 10.3% in September to 10.1% in October. Core inflation, which excludes volatile items such as fresh fruit and vegetables, rose 6.3% over the same month last year, which was higher than the 5.6% increase tallied in September.
Author: Carl Kelly, Economist