Egypt: Inflation jumps up in September
October 9, 2015
In September, consumer prices increased 2.45% over the previous month, which was much stronger than the 0.63% increase recorded in August. According to the Central Agency for Public Mobilization and Statistics, the increase was mainly driven by higher prices for food and non-alcoholic beverages, which registered the largest monthly gain in more than five years.
Inflation jumped from 7.9% in August to 9.2% in September. 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 imported goods. Meanwhile, annual average inflation decreased from 10.5% in August to 10.3% in September. Core consumer prices, which exclude volatile items such as fresh fruit and vegetables, rose 5.6% over the same month last year, which matched the result seen in August.
Author: Carl Kelly, Economist