CAPMAS attributed the increase in the annual headline inflation mainly to the hike in prices of electricity, gas, and fuel materials (by 7.2 percent); meat and poultry (by 3.3 percent); fish and seafood (by 2.1 percent); home furnishings (by 1.6 percent); dairy products, cheese, and eggs (by two percent); textiles (by 1.4 percent); oils and fats (by 0.3 percent); transport (by 0.4 percent); postal services (by 3.7 percent); coffee, tea, and cocoa (by 1.2 percent); and ready-made meals (by 2.1 percent).

However, the prices of some commodities decreased, such as fruits (by 2.1 percent), vegetables (by 0.4 percent), and hotel services (by 0.4 percent).

CAPMAS data indicated a significant rise in the prices of commodities and services in October 2024 compared to October 2023.

For example, food and beverage prices jumped by 26.9 percent; alcoholic beverages and tobacco by 35.1 percent; clothing and shoes by 24.4 percent; transportation by 30.2 percent; culture and entertainment services by 48.2 percent; and electricity, fuel, and water by 20.3 percent.

Similarly, Egypt’s annual headline inflation increased to 26 percent in September, up from 25.6 percent in August, while the monthly headline inflation surged to 2.3 percent in September, compared to 1.9 percent in August.

Meanwhile, the annual core inflation rate decreased slightly to 25 percent in September, compared to 25.1 percent in August.

Containing inflation and reducing it remains a top priority for Egypt as part of its $8 billion loan agreement with the International Monetary Fund (IMF).

The IMF's Regional Economic Outlook (REO) report, which focuses on the Middle East and Central Asia, forecasted that Egypt's inflation rate will significantly slow to 16 percent by the end of the fiscal year 2024/2025, which concludes in June 2025.

Additionally, Fitch Ratings expected inflation to drop to 12.5 percent by the end of FY2025.

The Central Bank of Egypt (CBE) initially set an inflation target of seven percent, with a margin of ±2 percent.

The CBE's Monetary Policy Committee (MPC) sets the key interest rates based on global and domestic macroeconomic trends, particularly inflation rates and the performance of the local currency relative to the US dollar.

The MPC will convene on 21 November to review the key interest rates.

In its latest meeting, the CBE kept the overnight deposit rate, overnight lending rate, and main operations rate unchanged at 27.25 percent, 28.25 percent, and 27.75 percent, respectively.

Moreover, the CBE has raised the key interest rates by 1900 bps since March 2022.