Egypt: Inflation declines for third consecutive month in October
November 16, 2017
In October, urban consumer prices rose 1.10% from the previous month, up slightly from September’s 1.00% rise. October’s price increase was driven by higher regulated prices for some services, including education and landline telephone services, and higher prices for fresh vegetables. Core consumer prices, which exclude several food products and regulated utilities, increased from 0.19% in September to 0.70% in October largely on the back of higher costs for the aforementioned services.
Urban inflation fell from 31.6% in September to 30.8% in October, marking the third consecutive decline. It now appears more likely that the country is finally over the inflation hump, after inflation peaked in July on the back of fuel and electricity subsidy cuts; this will be seen as a vindication of the Central Bank’s tight monetary stance. Meanwhile, annual average inflation rose from 27.9% in September to 29.3% in October.
Author: Oliver Reynolds, Economist