Egypt’s main inflation rate went up to 26.4% in September

Statistics from Egypt’s CAPMAS showed on Wednesday that yearly urban consumer price inflation rose for a second month in a row, from 26.2% in August to 26.4% in September.

Prices went up by 2.1% from one month to the next, which was the same as the 2.1% rise in August. Prices of food went up by 2.6%, more than the 1.8% rise in August. In September, the cost of food was 27.7% more than it was a year ago.

As of late, prices for fuel went up by 10–15% near the end of July, metro tickets went up by 25–33% at the start of August, and energy rates went up by 21–31% in August and September.

From a record high of 38.0% in September 2023, inflation had been slowly going down. In July, the central bank’s real overnight borrowing rate went up to 27.25%, the first time since January 2022 that it had been positive.

Nineteen experts polled thought that inflation in cities would drop to 26.0% in September.

Egypt’s core inflation slowed from 25.1% in August to 25.0% in September. This is because volatile things like fuel and some types of food were taken out of the calculation.

Five of the experts Reuters talked to thought that core inflation would drop to a median level of 24.8%.

Egypt tightened its monetary policy as part of a $8 billion aid package made with the International Monetary Fund in March. As part of the package, Egypt had to raise many prices in its own country and devalue its currency.