And rose Inflation On a monthly basis in August as a result of a 10-15 percent increase in fuel prices towards the end of July, a 25-33 percent increase in metro tickets at the beginning of August and a 21-31 percent increase in electricity costs that occurred partly in August.
The average forecast of 19 analysts indicated a decline in annual inflation in Egyptian cities to 25.9 percent in September, down from 26.2 percent in August.
And I fell Egypt In March, an eight-billion-dollar financial support package was signed with the International Monetary Fund to help control a monetary policy that fuels inflation but requires an increase in the prices of a large number of domestic products.
The government raised the prices of a number of subsidized goods to address the budget deficit, which amounted to 505 billion Egyptian pounds ($10.3 billion) in the fiscal year ending June 30. The value of the pound was also severely devalued.
“There was likely a return to disinflation last month as the impact of the previous sharp decline in the pound continued to fade,” James Swanston of Capital Economics told Reuters.
He added, “We expect the inflation rate in Egyptian cities to decline to 25.9 percent on an annual basis, and it is likely to decline further in the coming months to about 23 percent on an annual basis by the end of the year before a sharp decline occurs in the first quarter of 2025.”
Inflation trended to decline gradually from a record high of 38 percent in September 2023. Egypt’s key real interest rates became positive in July for the first time since January 2022.
The average forecast of five analysts indicated that core inflation, which excludes volatile goods such as fuel and some food, will fall to 24.8 percent from 25.1 percent in August.
The Central Agency for Public Mobilization and Statistics is scheduled to release inflation data for September on Thursday.
