عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Egypt Inflation Unexpectedly Quickens to 26.2% in August

An aerial view shows a motorway in Egypt's capital Cairo on September 9, 2024. (Photo by AFP)
An aerial view shows a motorway in Egypt's capital Cairo on September 9, 2024. (Photo by AFP)
TT
TT

Egypt Inflation Unexpectedly Quickens to 26.2% in August

An aerial view shows a motorway in Egypt's capital Cairo on September 9, 2024. (Photo by AFP)
An aerial view shows a motorway in Egypt's capital Cairo on September 9, 2024. (Photo by AFP)

Egypt's annual urban consumer price inflation rate unexpectedly accelerated to 26.2% in August from 25.7% in July, data from statistics agency CAPMAS showed on Tuesday.
Month-on-month, prices jumped by 2.1%, speeding up from a 0.4% rise in July. Food prices climbed by 1.8% in August after having eased by 0.3% in July and were 29.0% higher than a year ago.
A poll of 19 analysts had expected August urban inflation to ease to a median of 25.1%.
Sara Saada of CI Capital was one of the few analysts who had predicted inflation would accelerate.
"We expected this, as the August reading reflects energy price hikes that were announced in the last week of July. This included diesel, that has a broad-based effect," she said, speaking to Reuters after the figure was announced.
Prices rose over the last month due to higher summer produce prices, fuel hikes of 10-15% near the end of July, a 25-33% jump in metro tickets at the beginning of August and a 21-31% increase in electricity tariffs, partly in August.
Inflation had been declining gradually from September's record high of 38.0%, turning the central bank's real overnight borrowing rate, at 27.25%, positive in July for the first time since January 2022.

Most Viewed

 
 
Business

China: Consumer Prices Rise in August, PPI Stuck in Deflation

A woman shops in a supermarket, Beijing, China, Sept. 9, 2024 (EPA)
A woman shops in a supermarket, Beijing, China, Sept. 9, 2024 (EPA)
TT
TT

China: Consumer Prices Rise in August, PPI Stuck in Deflation

A woman shops in a supermarket, Beijing, China, Sept. 9, 2024 (EPA)
A woman shops in a supermarket, Beijing, China, Sept. 9, 2024 (EPA)

China's consumer inflation accelerated in August to the fastest pace in half a year but the uptick was due more to higher food costs from weather disruptions than a recovery in domestic demand as producer price deflation worsened.

A sputtering start in the second half is mounting pressure on the world's second-largest economy to roll out more policies amid a prolonged housing downturn, persistent joblessness, debt woes and rising trade tensions.

The consumer price index (CPI) rose 0.6% from a year earlier last month, versus a 0.5% rise in July, data from the National Bureau of Statistics (NBS) showed on Monday, but less than a 0.7% increase forecast in a Reuters poll of economists.

Extreme weather this summer from deadly floods to scorching heat has pushed up farm produce prices, contributing to faster inflation, Reuters reported.

China's affected crops due to various natural disasters totaled 1.46 million hectares in August, state media reported on Monday.

“The higher CPI in August was due to high temperatures and the rainy weather,” NBS statistician Dong Lijuan said in a statement.

Food prices jumped 2.8% on year in August from an unchanged outcome in July, while non-food inflation was 0.2%, easing from 0.7% in July.

“But the rebound was softer than expected and did little to ease deflation concerns. Much of the improvement has been food reflation, which is susceptible to fluctuating weather conditions and capacity changes,” said Junyu Tan, North Asia Economist at Coface.

Core inflation, excluding volatile food and fuel prices, was 0.3% in August - the lowest in nearly three and a half years - down from 0.4% in July.

The consumer inflation gauge was up 0.4% month-on-month, compared with a 0.5% increase in July and missing economists' expectations of a 0.5% gain.

In unusually strong comments, China's ex-central bank governor Yi Gang urged efforts to fight deflationary pressure at the Bund Summit in Shanghai last week.

A national campaign to earmark $41 billion in ultra-long treasury bonds to support equipment upgrades and trade-in of consumer goods has proven lukewarm in spurring consumer confidence, with domestic car sales extending declines for a fourth month in July.

“These policies will take time to filter through, so a demand-led reflation is obviously not yet on the horizon,” Tan said.

Meanwhile, the producer price index (PPI) in August slid 1.8% from a year earlier, the largest fall in four months. That was worse than a 0.8% decline in July and below a forecast 1.4% fall.

“The ongoing deflationary pressures boil down into a broader problem of production surplus, which is still outstripping demand,” said Tan.

China's yuan dipped against the dollar on Monday as long-dated yields hit record lows after monthly inflation data added to economic worries and calls for fresh easing.