Egypt's inflation increases to 26.2 percent in August amid higher prices, IMF support

9/11/2024 9:14:52 AM

(MENAFN) On Tuesday, Egypt's Central Agency for Public Mobilization and Statistics reported that the annual urban consumer price inflation rate climbed to 26.2 percent in August, up from 25.7 percent in July. Monthly data revealed a notable rise in prices, with an increase of 2.1 percent in August compared to 0.4 percent in July. Food prices saw a significant acceleration, rising by 1.8 percent last month, a sharp contrast to the previous month's 0.3 percent increase. A survey of 19 analysts had predicted a moderation in urban inflation to an average of 25.1 percent for August. However, some analysts anticipated a monthly rise due to recent government-imposed price hikes.

In March, Egypt secured an USD8 billion financial support package from the International Monetary Fund (IMF) aimed at stabilizing its monetary policy, which, while controlling inflation, also necessitated price increases for various local goods. Consequently, the government has raised prices on numerous subsidized products to address a budget deficit that reached 505 billion Egyptian pounds (USD10.3 billion) for the fiscal year ending June 30. Despite these challenges, inflation has decreased from a record high of 38.0 percent in September of the previous year. This gradual decline has led to Egypt's benchmark real interest rates becoming positive for the first time since January 2022 as of July.

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