Egypt Inflation August 2017

Egypt

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.

Looking ahead, inflation should gradually decline as tight monetary policy dampens inflationary pressures. FocusEconomics Consensus Forecast participants expect inflation to average 25.4% in calendar year 2017, and 15.9% in calendar year 2018.


Author:, Economist

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Egypt Inflation August 2017

Note: Year-on-year and month-on-month variation of urban consumer price index in %.
Source: Central Agency for Public Mobilization and Statistics (CAPMAS).


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