The Central Bank of Egypt building in the new Administrative capital. Photo courtesy of FEB website.
According to the CBE, the monthly core inflation recorded one percent in September 2024, compared to 1.1 percent in September 2023 and 0.9 percent in August 2024.
Meanwhile, the monthly urban headline inflation reached 2.1 percent in September 2024, compared to two percent in September 2023 and 2.1 in August 2024, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).
Moreover, CAPMAS said Egypt’s annual headline inflation slightly increased in September to 26 percent, up from 25.6 percent in August, while the monthly headline inflation jumped to 2.3 percent, up from 1.9 percent in August.
Similarly, Egypt's annual core inflation rate accelerated by 0.7 percent in August to 25.1 percent, up from 24.4 percent in July.
Containing inflation and steering it downward is a major focus for Egypt under its $8 billion loan programme with the International Monetary Fund (IMF).
Originally, the CBE set the inflation target at seven percent (±2 percent).
During its latest meeting, the central bank forecasted a decline in the inflation rate for the first quarter of 2025 due to the combined effects of its monetary tightening strategies.
Additionally, BMI Research anticipated that inflation in Egypt would drop below 20 percent by February 2025.
The CBE has raised the key interest rates by 1900 bps since March 2022 to 19 percent.
However, 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.
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