Economy

Egypt’s annual inflation slows to 11.7% in September

Annual inflation has plunged from a record high of 38% in September 2023.

 Egypt’s annual urban consumer price inflation slowed to 11.7% in September from 12% in August, data from statistics agency CAPMAS showed on Wednesday, a deceleration less than what analysts in a Reuters poll had anticipated.

The median forecast was for an easing to 11% in the poll of 15 analysts, extending a two-year downward trend as the government tightens monetary policy.

Month-on-month, prices rose by 1.8% in September, CAPMAS said. Food and beverage prices rose by an annual 1.4% and by a monthly 2.0%, it said.

The annual inflation rate has plunged from a record 38% in September 2023, helped by an $8 billion financial support package from the International Monetary Fund in March 2024.

M2 money supply growth, at an annual 22.88% in August, has also been slowing since Egypt signed the IMF package, central bank data showed.

Slowing inflation prompted Egypt’s central bank to cut its overnight lending rate by 100 basis points on October 2, following an August 28 cut of 200 basis points, this year’s third and fourth reductions.

© ZAWYA

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