Inflation rises in Egypt amid economic challenges

(MENAFN) In August, Egypt's core inflation rate experienced an upward trend, reaching 25.1 percent year-on-year, up from 24.4 percent in July, as reported by the Central Bank of Egypt. This increase reflects a broader trend of rising prices, with the monthly core consumer price index recording a change of 0.9 percent in August, a notable rise from the 0.3 percent recorded in August 2023 and a stark contrast to the negative 0.5 percent recorded in July 2024.

In parallel, Egypt's annual urban consumer price inflation also climbed to 26.2 percent in August from 25.7 percent the previous month, according to the Central Agency for Public Mobilization and Statistics. Monthly price changes showed a significant increase of 2.1 percent in August, compared to a 0.4 percent rise in July. The acceleration in food prices was particularly pronounced, with a 1.8 percent increase in August following a mere 0.3 percent rise in July.

Analysts had anticipated a decrease in urban inflation, forecasting an average of 25.1 percent for August. However, this forecast did not account for the recent government-imposed price hikes. Earlier in the year, Egypt secured an USD8 billion financial support package from the International Monetary Fund (IMF), aimed at managing inflationary pressures while implementing necessary price adjustments on a range of local products.

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