According to CBE, the monthly core inflation recorded 0.9 percent in August 2024, compared to 0.3 percent in August 2023 and -0.5 percent in July 2024.

Meanwhile, the monthly urban headline inflation recorded 2.1 percent in August 2024, compared to 1.6 percent in August 2023 and 0.4 in July 2024, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). 

Moreover, the country's annual urban consumer price inflation rate unexpectedly accelerated to 26.2 percent in August, up from 25.7 percent in July, for the first time in five months.

The annual headline inflation also slightly increased in August to 25.6 percent, up from 25.2 percent in July.

However, the annual core inflation rate declined to 24.4 percent in July, down from 26.6 percent in June, marking its lowest point since December 2022.

The inflation rate in the prices of production supplies accelerated for the third consecutive month, according to an S&P report published in September.

Containing inflation and putting it on a downward path is one of the top priorities Egypt has committed to working on under its $8 billion loan programme with the International Monetary Fund (IMF).

The CBE originally set the inflation target at seven percent (±2 percent).

During its last meeting, the central bank anticipated the inflation rate to decline in the first quarter of 2025, due to the cumulative impact of monetary tightening policies.

Nevertheless, the CBE has also projected that inflation might increase for many reasons, including escalating regional geopolitical tensions, declining global oil supplies, and uncertainty about protectionist trade policies.

The central bank has raised the key interest rates by 1900 bps since March 2022 to 19 percent.

On Thursday, it kept the overnight deposit rate, overnight lending rate, and the rate of main operations unchanged at 27.25 percent, 28.25 percent, and 27.75 percent, respectively.