Egypt's Inflation Rises 1.3% in October as Price Pressures Persist
Monthly inflation index reaches 264.3 points amid early signs of stabilization in macroeconomic indicators.
Egypt’s monthly inflation rose by 1.3 percent in October, bringing the consumer price index to 264.3 points, according to official data from the Central Agency for Public Mobilization and Statistics (CAPMAS).
The annual inflation rate softened slightly to 10.1 percent compared to September's 10.3 percent.
The increase is attributed primarily to rising food and beverage prices by 1.2 percent, alcoholic beverages and tobacco by 0.7 percent, and clothing and footwear by 1.2 percent.
Housing, water, electricity, gas, and fuel costs surged by 5 percent month on month, while household furnishings rose by 0.5 percent and healthcare services by 0.2 percent.
The transportation and recreation sectors each experienced a modest increase of 0.1 percent.
Despite declines in the prices of audio, video, photography, and information processing equipment (down 1.8 percent) and organized tours (down 0.4 percent), restaurant and hotel prices overall rose by 0.2 percent, with hotel service charges decreasing by 0.7 percent.
The miscellaneous goods and services category saw a 1.1 percent increase.
In October, S&P Global Ratings upgraded Egypt’s long-term sovereign credit rating to 'B' from 'B-'.
This move was based on the country's implementation of structural reforms and improved policy coordination under its International Monetary Fund-backed program.
Fitch Ratings affirmed its 'B' rating with a stable outlook during the same period.
According to S&P, Egypt’s economic recovery has been bolstered by 18 months of reforms, including a shift to a more flexible foreign exchange regime and new investment incentives.
Additionally, Egypt continues to benefit from an $8 billion loan program secured from the IMF in March 2024, along with over $10 billion in financing from multilateral lenders.
The adoption of a flexible exchange-rate policy in early 2024 has allowed the Egyptian pound to trade under a market-based regime, stabilizing the balance of payments and restoring investor confidence.
This move contributed significantly to the stabilization of Egypt's macroeconomic indicators.
The annual inflation rate softened slightly to 10.1 percent compared to September's 10.3 percent.
The increase is attributed primarily to rising food and beverage prices by 1.2 percent, alcoholic beverages and tobacco by 0.7 percent, and clothing and footwear by 1.2 percent.
Housing, water, electricity, gas, and fuel costs surged by 5 percent month on month, while household furnishings rose by 0.5 percent and healthcare services by 0.2 percent.
The transportation and recreation sectors each experienced a modest increase of 0.1 percent.
Despite declines in the prices of audio, video, photography, and information processing equipment (down 1.8 percent) and organized tours (down 0.4 percent), restaurant and hotel prices overall rose by 0.2 percent, with hotel service charges decreasing by 0.7 percent.
The miscellaneous goods and services category saw a 1.1 percent increase.
In October, S&P Global Ratings upgraded Egypt’s long-term sovereign credit rating to 'B' from 'B-'.
This move was based on the country's implementation of structural reforms and improved policy coordination under its International Monetary Fund-backed program.
Fitch Ratings affirmed its 'B' rating with a stable outlook during the same period.
According to S&P, Egypt’s economic recovery has been bolstered by 18 months of reforms, including a shift to a more flexible foreign exchange regime and new investment incentives.
Additionally, Egypt continues to benefit from an $8 billion loan program secured from the IMF in March 2024, along with over $10 billion in financing from multilateral lenders.
The adoption of a flexible exchange-rate policy in early 2024 has allowed the Egyptian pound to trade under a market-based regime, stabilizing the balance of payments and restoring investor confidence.
This move contributed significantly to the stabilization of Egypt's macroeconomic indicators.
