Egypt’s Inflation Eases to 10.3% in September, Marking Fourth Consecutive Month of Decline

Egypt’s annual inflation rate continued to slow in September, falling to 10.3 percent year-on-year, marking the fourth consecutive month of easing consumer prices, according to official figures released by the Central Agency for Public Mobilization and Statistics (CAPMAS).

The Consumer Price Index (CPI) rose 1.5 percent month-on-month to 260.9 points, primarily driven by higher housing and utility costs. CAPMAS reported that the “housing, water, electricity, gas, and fuel” category increased by 3.4 percent in September, reflecting a 1.3 percent rise in actual rental prices, a 7.1 percent increase in calculated rent, and a 1.4 percent jump in maintenance and repair expenses.

The agency noted that prices for electricity, gas, and fuel rose 0.3 percent, while water and related services climbed 0.2 percent. Meanwhile, food and beverage costs rose 1.9 percent, largely due to a sharp 12.2 percent increase in vegetable prices, a 3.5 percent rise in fruits, and a marginal 0.3 percent uptick in meat and poultry.

Inflation in Egypt has been on a steady downward trend since peaking at 33.2 percent in September 2023. The decline followed the government’s implementation of economic reforms supported by an $8 billion loan agreement with the International Monetary Fund (IMF) in March 2024. The program helped stabilize the Egyptian pound and bolster investor confidence, easing price pressures across several key sectors.

Other contributors to September’s inflation included the alcoholic beverages and tobacco category, which rose 0.8 percent on a monthly basis, and healthcare, which saw a 0.4 percent increase. Within healthcare, outpatient services costs increased by 0.8 percent, while hospital expenses climbed by 1 percent compared with August.

On an annual basis, the alcoholic beverages and tobacco category saw the steepest rise at 25.3 percent, followed by housing, water, electricity, and fuel, which were up 18.2 percent. Clothing and footwear costs advanced 14.4 percent year-on-year, while food and beverages showed a slight increase of 0.3 percent.

The moderation in inflation has been accompanied by supportive monetary policies. Earlier this month, Egypt’s Central Bank reduced interest rates by 100 basis points — its fourth rate cut this year — citing lower inflationary pressures and steady economic growth of around 5 percent in the second quarter.

In February, global credit rating agency Moody’s affirmed Egypt’s long-term foreign and local currency ratings at Caa1 with a positive outlook, noting that the government’s fiscal measures and monetary policy adjustments were beginning to yield results in curbing inflation and stabilizing the economy.