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In September, Egypt experienced a historic high in annual urban consumer price inflation, reaching 38 percent, up from the 37,4 percent recorded in August, surpassing the expectations of analysts.
According to the country’s statistics agency CAPMAS this marks the fourth consecutive month of record-high inflation figures, as reported on the central bank website, which maintains data dating back to 2000.
Before the release of this data, a median forecast from a poll of 18 analysts had indicated that annual urban consumer inflation was expected to rise to 37,6 percent in September.
Before inflation surged in June, the previous high was recorded at 32,95 percent in July 2017.
On a monthly basis, inflation also picked up speed, with prices rising by 2 percent compared to a 1,6 percent increase in August, according to Allen Sandeep of Naeem Brokerage. This marked the fastest pace of increase since June, Reuters reported.
Within the category of food and beverages, there were significant month-on-month increases, with vegetable prices surging by 19,2 percent, fruits by 5,4 percent, dairy products by 5,4 percent, and sugar items by 2,9 percent, as highlighted by Sandeep.
To combat food inflation, the government announced on Monday that it had reached an agreement with private producers and retailers to reduce prices on essential foods by 15-25 percent and exempt them from customs duties for six months.
The rapid money supply growth over the past two years has contributed to a swift increase in prices and has led to the Egyptian pound losing half its value against the US dollar since early last year. — Business Insider Africa.
Online Reporter