Egypt’s Consumer Price Inflation Jumps to 12.5% in October

Egypt’s annual urban consumer price inflation climbed beyond expectations to 12.5% in October, halting a four-month decline, as reported by data from the statistics agency CAPMAS on Monday. The core inflation rate, excluding volatile items like fuel and some types of food, also increased to 12.1% annually in October, up from 11.3% in September, according to the central bank. Preceding forecasts had anticipated inflation to reach 12% in a survey of 14 analysts, with some attributing the rise to fuel price hikes and a new law allowing landlords to raise rents. The urban consumer inflation rate rose from 11.7% in September. In October, prices increased by 1.8% month-on-month, with food and beverage prices climbing 1.5% annually and 1.2% monthly, according to CAPMAS. The government raised prices on various fuel products by nearly 13% on October 17. A recent law enabling landlords to increase monthly rents became effective in early August, impacting September’s inflation data. The annual inflation rate has substantially declined from a peak of 38% in September 2023, aided by an $8 billion financial assistance package from the International Monetary Fund in March 2024.