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)

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.