Egypt's Inflation: A Closer Look at Economic Dynamics
Egypt's urban consumer price inflation increased slightly to 26.5% in October from 26.4% in September, below expectations. Monthly headline inflation remained stable at 1.1%. Core inflation eased to 24.4%, while food prices rose significantly. The money supply expanded by 29.59% year-on-year, contributing to inflationary pressures.
Egypt registered a minor uptick in its annual urban consumer price inflation, which rose to 26.5% in October from 26.4% the previous month, according to CAPMAS data released on Sunday. Analysts had anticipated a higher increase, predicting a rise to 27%.
Monthly headline inflation stayed consistent at 1.1%. Meanwhile, food prices climbed by 1.1%, down from September's 2.6% increase. Despite easing to 24.4% in October, core inflation, excluding volatile items like fuel, remains a concern, according to the central bank.
The inflation surge is primarily driven by a substantial increase in the money supply, which grew by 29.59% year-on-year in September, as reported by the central bank. These dynamics continue to pressure Egypt's economy.
(With inputs from agencies.)
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