Egypt's inflation speeds up to 38% in September

Posted on October 16, 2023   |  

In September, Egypt witnessed urban consumer inflation at 38.0%, marking the 4th straight month of record highs.

These historical records have been maintained on the central bank's website since the year 2000.

Analysts had projected a 37.6% inflation rate for September.

The previous peak before the sharp rise in June was 32.95% in July 2017.

Monthly inflation also showed an increase, with a 2.0% rise in September compared to 1.6% in August.

Notably, food and beverage prices saw significant hikes, including vegetables (19.2%), fruits (5.4%), dairy products (5.4%), and sugar items (2.9%). 

To combat food inflation, the government collaborated with producers and retailers to reduce staple food prices by 15-25% and exempt them from customs duties for six months. 

Rapid growth in money supply over the past 2 years increased prices and a 50% depreciation of the local currency against the U.S. dollar since March 2022.