CBE: Non-food items fuel August inflation
Egypt’s annual urban headline inflation rose slightly to 26.2 per cent in August 2024, driven by higher prices of non-food items, which increased to 24.4 per cent in the same month, according to central bank‘s latest analysis.
The Central Bank of Egypt‘s (CBE) Monthly Inflation Developments report highlighted that the recent fiscal measures implemented have contributed to rising prices for certain services and retail items.
The prices of regulated items such as fuel and public transport have been directly impacted by these measures. Additionally, the ongoing increase in pharmaceutical product prices, which rose by 4.4 per cent monthly, is also a contributing factor.
On a positive note, annual food inflation continued its downward trajectory, reaching its lowest level in nearly two years at 29.0 per cent in August 2024, down from 29.7 per cent in July 2024.
Annual core inflation rose to 25.1 per cent in August 2024 from 24.4 per cent in July 2024. While core food prices were stable, but higher fuel costs caused a monthly core inflation increase to 0.9 per cent in August 2024 from -0.5 per cent in July 2024.
Contributors to monthly inflation
- Fresh fruits prices increased by 1.3 per cent, while vegetables rose by 17.9 per cent, adding 0.77 per cent to inflation.
- Poultry prices fell by 3.7 per cent, reducing inflation by 0.21 per cent.
- Oils and fats prices decreased by 0.4 per cent, impacting inflation by -0.01 per cent.
- Eggs and dairy prices went up by 5.4 per cent and 0.8 per cent, contributing 0.13 per cent to inflation.
- Regulated items like public transport and fuel increased by 2.9 per cent, contributing 0.59 percentage points.
- Services saw a 1.7 per cent rise, driven by spending on restaurants, cafes, and private transportation, adding 0.47 percentage points.
- Retail items increased by 1.7 per cent, with higher costs of pharmaceutical products, medical appliances, household cleaning products, and personal care products contributing 0.24 percentage points.
Attribution: CBE statement
Subediting: M. S. Salama
