Egypt’s annual inflation rises in September to reach its highest level since December 2020
Tawfiqiya commercial market in downtown Cairo. Ahram online
The September reading is the highest since December 2020.
The increase was driven by a notable increase in food and beverage prices by 13.1%, prices for culture and entertainment services by 6.5% and prices for health services by 2.4%, a declared CAPMAS.
The overall monthly inflation rate also increased in September by 1.6%.
CAPMAS attributed this increase mainly to the rise in food and beverage prices by 4.4%, health services by 0.5%, catering and hotel services by 0.6% and services culture and entertainment 0.2%.
Annual and monthly headline inflation readings are within the Central Bank of Egypt (CBE) target range through Q4 2022 at 7% ± 2%.
The CBE’s Monetary Policy Committee (MPC) is due to meet on October 28 to review key interest rates for the seventh time in 2021.
The MPC examines policy interest rates based on recent developments in macroeconomic performance at global and local levels, with a particular focus on recent inflation figures.
At the last meeting, held on September 16, the MPC decided to keep the overnight deposit rate, overnight lending rate and the main transaction rate unchanged at 8.25%, 9 , 25% and 8.75%, respectively.
The discount rate was also kept unchanged at 8.75%.