Egypt’s annual urban headline inflation ticked up to 26.2% in August 2024, compared to 25.7% in July 2024.
In line with the recent fiscal consolidation measures, annual inflation outturns in August 2024 were mainly driven by non-food items, which increased by 24.4% compared with 22.9% in July 2024.
In addition to their direct impact on the prices of regulated items such as fuel and public transportation, the recent fiscal measures passed through to the prices of certain services and retail items. Furthermore, the prices of pharmaceutical products continued to increase in August 2024, recording 4.4% every month.
Meanwhile, annual food inflation continued to decelerate, reaching its lowest rate in almost two years at 29.0% in August 2024 compared with 29.7% in July 2024.
Annual core inflation increased to 25.1% in August 2024 from 24.4% in July 2024. Despite the relatively stable prices of core food items, the passthrough of higher fuel prices to both services and retail items was reflected in monthly core inflation, which increased to 0.9% in August 2024 compared with -0.5% in July 2024 and 0.3% in August 2023.
Monthly urban headline inflation1 recorded 2.1% in August 2024 compared with 1.6% during the corresponding month in 2023, and 0.4% in July 2024.
In addition to the impact of fiscal measures on non-food items, monthly outturns also reflected the seasonal increase in the prices of fresh vegetables as well as stable core food prices.
Annual rural headline inflation recorded 25.0% in August 2024 compared with 24.7% in July 2024. Additionally, annual nationwide headline inflation increased to 25.6% in August 2024, up from 25.2% in July 2024.
Prices of fresh fruits and fresh vegetables increased by 1.3% and 17.9%, respectively. In line with their seasonal pattern, the price increases in both components contributed 0.77% to monthly headline inflation.
Prices of poultry declined (for the second consecutive month) by 3.7%, contributing -0.21% to monthly headline inflation.
Prices of market rice declined (for the sixth consecutive month) by 2.8%, contributing -0.04% to monthly headline inflation.
Prices of oils and fats declined (for the sixth consecutive month) by 0.4%, contributing -0.01% to monthly headline inflation.
Prices of eggs and dairy products increased by 5.4% and 0.8%, respectively. Together, these components contributed 0.13% to monthly headline inflation.
Prices of other core food items; including red meat, market sugar, pulses, and market tea, contributed 0.12% to monthly headline inflation.
Prices of regulated items increased by 2.9%, contributing 0.59% to monthly headline inflation. This was mainly driven by the recent increase in public transportation and fuel prices.
Prices of services increased by 1.7%, contributing 0.47% to monthly headline inflation. The increase was mainly driven by higher expenditure on restaurants and cafes and private transportation services.
Prices of retail items increased by 1.7%, contributing 0.24% to monthly headline inflation. This was mainly driven by pharmaceutical products and medical appliances, household cleaning products, as well as personal care products.
Monthly core inflation was affected by price increases in the aforementioned core CPI items. Services and retail items contributed 0.64% and 0.32% to monthly core inflation, respectively, while core food items contributed -0.02%.
