Egypt: Inflation dips in August but remains excruciatingly high
September 26, 2017
In August, urban consumer prices rose 1.13% from the previous month, down sharply from July’s 3.22% increase, which was underpinned by a VAT hike and fuel subsidy cuts. The month-on-month price uptick in August was partly driven by substantially higher electricity prices following a recent government subsidy reform. In addition, there were also higher prices for fresh vegetables and red meat. Core consumer prices—which exclude several food products and regulated utilities—dropped from 2.76% in July to 0.31% in August.
Urban inflation fell from a multi-year high of 33.0% in July to 31.9% in August, thanks in part to a favorable base effect. Meanwhile, annual average inflation ticked up from 25.1% in July to 26.5% in August.
Author: Oliver Reynolds, Economist