Egypt: Inflation remains stubbornly high in September despite slight dip
October 12, 2017
In September, urban consumer prices rose 1.00% from the previous month, down from August’s 1.13% rise. September’s price rise was driven by higher vegetable, water and gas prices. Core consumer prices—which exclude several food products and regulated utilities—ticked up 0.19% in September, down from August’s 0.31% rise and marked the lowest figure since August 2015. The evolution of core consumer prices is a clear sign of ebbing underlying cost pressures, even though headline figures continue to be propped up by the impact of the government’s IMF-backed reform program.
Urban inflation fell from 31.9% in August to 31.6% in September. Meanwhile, annual average inflation rose from 26.5% in August to 27.9% in September.
Author: Oliver Reynolds, Economist