Inflation's Tight Grip: Egypt's Economic Struggles Persist

Egypt's urban consumer price inflation climbed slightly in October to 26.5%, according to CAPMAS. Although below forecasts, this marks the third consecutive monthly increase. Notably, food prices also rose significantly. The inflation is driven by a substantial year-on-year growth of 29.59% in Egypt's M2 money supply.

Egypt's urban consumer price inflation recorded a marginal rise to 26.5% in October, up from 26.4% in September, but still slightly below market expectations, per data released by CAPMAS on Sunday.

The month-on-month increase in headline inflation was steady at 1.1%, consistent with September's rise. Analysts had predicted an increase to 27% for October, yet despite falling short, inflation rates have been climbing steadily for three months.

Food prices saw a 1.1% increase compared to September's 2.6%, leading to an overall annual rise of 27.3%. This inflationary pressure is primarily due to an aggressive expansion in the money supply, with Egypt's M2 money supply expanding by 29.59% year-on-year as central bank data indicates.

(With inputs from agencies.)