Inflation was forecast to accelerate from 14.3% in June amid renewed food and non-food price pressures
By: Middle East Bureau
Location: Cairo, Egypt
Egypt’s annual urban consumer price inflation was expected to rise in July, with a Reuters poll of 13 analysts putting the median forecast at 15.6%, up from 14.3% in June. The official figures were due from Egypt’s statistics agency, CAPMAS, on August 10.
Economists attributed the expected increase largely to an unfavourable base effect and renewed pressure on food and non-food prices. Forecasts in the Reuters poll ranged from 14.6% to 16.3%, while Barclays estimated the annual rate could reach 16.1%.
Egypt’s inflation trajectory has been closely watched as the government continues implementing economic reforms under an $8 billion IMF support programme. Inflation had previously fallen sharply from a record 38% in September 2023, although subsidy reforms and administered price increases have continued to influence consumer costs.
Electricity prices were also raised by an average of about 12% for most consumption brackets in July, a measure economists said could contribute to additional inflationary pressure in subsequent months.
The Central Bank of Egypt reported that urban inflation had declined from 14.6% in May to 14.3% in June, while monthly urban headline inflation recorded a 0.4% decline in June.
Published by:
David Okafor | Correspondent, Africa