Egypt's Urban Inflation Accelerates to 26.2% in August

Egypt's urban consumer price inflation rate unexpectedly surged to 26.2% in August from 25.7% in July. Monthly prices jumped by 2.1%, driven by higher food and fuel costs. This contradicts analysts' expectations of a decline. Inflation was influenced by energy price hikes, summer produce, metro ticket increases, and electricity tariffs.

Egypt's urban consumer price inflation rate unexpectedly surged to 26.2% in August from 25.7% in July, according to the latest data from the statistics agency CAPMAS.

Month-on-month, prices climbed by 2.1%, accelerating from a 0.4% rise in July, largely due to higher food prices, which rose by 1.8% after a previous decrease of 0.3%. The annual increase in food prices reached 29.0%.

A poll of 19 analysts had forecasted a median decline to 25.1%. Sara Saada of CI Capital, one of the few who predicted an increase, attributed the rise to energy price hikes announced in the last week of July. Various factors, including a 10-15% fuel hike, metro ticket price jumps, and an increase in electricity tariffs, contributed to the inflation spike, which was previously on a declining trend from a record high in September.

(With inputs from agencies.)