Egypt’s annual urban headline inflation slightly increased to 26.4% in September, compared to 26.2% in August 2024.
Non-food inflation continued to be the primary driver of headline inflation, as it increased to 25.5% in September 2024, from 24.4% in August 2024. This pickup is primarily attributed to the impact of fiscal consolidation measures such as higher electricity prices, as well as to the seasonal patterns of education-related products and services, and the increasing prices of pharmaceutical products. Higher expenditure on restaurants and cafes and rental values also contributed to the higher non-food inflation.
Annual food inflation continued the deceleration that started towards the end of 2023 to reach 27.7% in September 2024, mainly driven by the gradual easing of shocks and the favourable base effect from strong food inflation that peaked at 73.6% in September 2023.
Annual core inflation stabilized at 25.0% in September 2024 compared with 25.1% in August 2024.
Meanwhile, monthly core inflation registered 1.0% in September 2024 compared with 1.1% in September 2023, and 0.9% in August 2024, driven by higher prices of core food items such as poultry, eggs, dairy and seafood in addition to higher costs of services.
Monthly urban headline inflation1 recorded 2.1% in September 2024, compared with 2.0% in September 2023, and 2.1% in August 2024, and was mainly driven by volatile food, electricity prices, and core food.
Annual rural headline inflation recorded 25.6% in September 2024 compared with 25.0% in August 2024. Similarly, annual nationwide headline inflation increased to 26.0% in September 2024, up from 25.6% in August 2024.
Prices of fresh fruits and vegetables increased by 4.2% and 15.2%, respectively, in line with their seasonal pattern. Together they contributed 0.82% to monthly headline inflation.
Prices of poultry and eggs increased by 1.1% and 5.9%, respectively. Together they contributed 0.17% to monthly headline inflation.
Prices of dairy products increased by 1.0%, contributing 0.05% to monthly headline inflation.
Prices of fish and seafood increased by 1.4%, contributing 0.04% to monthly headline inflation.
Prices of oils and fats declined for the seventh consecutive month by 0.5%, contributing negative 0.02% to monthly headline inflation.
Prices of other core food items—including bread, red meat, market sugar, pulses, confectionary, and market tea— contributed 0.04% to monthly headline inflation.
Prices of regulated items increased by 2.8%, contributing 0.56% to monthly headline inflation. This was mainly driven by the recent increase in electricity prices.
Prices of services increased by 0.8%, contributing 0.22% to monthly headline inflation. The increase was mainly driven by higher expenditure on restaurants and cafes, rental values, and Hajj and Umrah trips.
Prices of retail items increased by 1.4%, contributing 0.20% to monthly headline inflation. This was mainly driven by pharmaceutical products, stationery and school supplies, personal care products, clothing and household cleaning products.
Monthly core inflation was affected by price increases in the aforementioned core CPI items. Core food items contributed 0.39% to monthly core inflation, while services contributed 0.31% and retail items 0.27%.
