Egypt's Annual Urban Inflation Edges Up Slightly To 26.5% In October

(MENAFN- Daily News Egypt) The Central Agency for Public Mobilization and Statistics (CAPMAS) has reported a slight increase in Egypt's annual urban inflation to 26.5% in October 2024, up from 26.4% in September. Across the country, annual inflation climbed to 26.3% in October from 26% in September, although this figure is notably lower than the 38.5% recorded in October 2023.

The Central bank of Egypt (CBE) pointed out that inflationary pressures remain high, influenced by volatile global commodity prices, particularly energy, driven by supply chain disruptions amid geopolitical tensions and adverse weather conditions.

At its meeting on 17 October, the CBE's Monetary Policy Committee decided to keep the overnight deposit rate at 27.25%, the lending rate at 28.25%, and the main operation and discount rates at 27.75%-marking the fourth consecutive meeting without any rate changes. The Committee noted that globally, tightening monetary policies in advanced and emerging economies have contributed to reducing inflation levels, with some central banks even beginning to cut rates as inflation nears their target levels.

Domestically, inflation is expected to remain stable through the fourth quarter of 2024, though certain risks remain, such as ongoing regional tensions, rising global commodity prices, and the potential impact of fiscal measures that could exceed projections. However, the CBE expects that inflation might start to decrease in the first quarter of 2025 due to the cumulative effects of prior monetary tightening and favourable base effects.

The Committee has reaffirmed its commitment to a data-driven approach in adjusting the level and duration of monetary tightening, closely monitoring monthly inflation trends and assessing the effectiveness of monetary policy measures. It emphasized its readiness to use all available monetary tools to reinforce the downward path of inflation and stabilize prices over the medium term.

CAPMAS further highlighted that the national consumer price index reached 240 points in October 2024, recording a monthly inflation rate of 1.5%, a decrease from the 2.3% increase observed in September. This monthly slowdown in inflation was attributed to price declines in various sectors, including a 2.1% decrease in fruit prices, a 0.4% drop in vegetables, and a 0.4% reduction in hotel services.

However, several categories experienced price increases. Meat and poultry prices rose by 3.3%, fish and seafood by 2.1%, dairy products, cheese, and eggs by 2%, coffee, tea, and cocoa by 1.2%, mineral water, soft drinks, and natural juices by 1.1%, cereals and bread by 0.8%, and oils and fats by 0.3%. In the energy sector, electricity, gas, and fuel prices saw a notable increase of 7.2%.

Home-related expenses also rose, with home maintenance and repair costs up by 1.5%, actual housing rent by 0.7%, fabrics by 1.4%, laundry, repair, and clothing rentals by 1.3%, footwear by 0.7%, household furnishings by 1.6%, and other goods and services used in home maintenance up by 1%.

In healthcare, outpatient services saw a price increase of 2.4%, and hospital services rose by 1.7%. Additionally, the cost of private transportation increased by 0.3%, public transportation services by 0.5%, postal services by 3.7%, and prepared meals by 2.1%.

These inflation figures underscore the continuing challenges of maintaining price stability amid persistent cost pressures affecting various essential goods and services.

MENAFN10112024000153011029ID1108870709