Urban inflation rate in Egypt rises to 26.2 percent amid rising prices, government measures
Date
9/11/2024 6:15:22 AM
(MENAFN) Egypt's annual urban consumer price inflation rate climbed to 26.2 percent in August, up from 25.7 percent in July, according to data released by the Central Agency for Public Mobilization and Statistics. The increase in prices on a monthly basis was significant, with a rise of 2.1 percent in August compared to a mere 0.4 percent in July. The acceleration in food prices was notable, reaching a 1.8 percent increase last month after a more modest 0.3 percent rise in July.
Analysts had predicted a slight easing of urban inflation to an average of 25.1 percent for August; however, the actual figure exceeded expectations, partly due to recent government-implemented price hikes. In March, Egypt secured an USD8 billion financial support package from the International Monetary Fund (IMF) to address inflationary pressures and manage a monetary policy that necessitates price increases on a broad range of local products. This financial aid aims to mitigate a substantial budget deficit, which stood at 505 billion Egyptian pounds (USD10.3 billion) for the fiscal year ending June 30.
The government’s adjustment of prices on subsidized products is part of a broader strategy to control the budget deficit. Despite the recent increase, inflation has shown a gradual decline from a peak of 38.0 percent last September. This decline has led to positive real interest rates for Egypt's benchmark rates for the first time since January 2022.
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