RIYADH: Egypt’s inflation slowed for a fourth consecutive month in September, easing to 10.3 percent year on year as consumer price pressures continued to moderate, official data showed. 

The Central Agency for Public Mobilization and Statistics said the Consumer Price Index rose 1.5 percent month on month to 260.9 points, driven mainly by higher housing and utility costs. 

Egypt’s inflation peaked at around 33.2 percent in September 2023 but has steadily eased since the government secured an $8 billion loan program from the International Monetary Fund in March 2024, which helped stabilize the currency and support policy reforms. 

In its latest release, CAPMAS stated: “Housing, water, electricity, gas and fuel section recorded an increase of 3.4 percent due to an increase in prices of the actual rental group of houses by 1.3 percent, calculated rent group of houses by 7.1 percent, and group of maintenance and repair of houses by 1.4 percent.”  

The report added that expenses for water and miscellaneous services related to housing increased by 0.2 percent, while electricity, gas, and fuel prices rose by 0.3 percent. 

Another key driver in September was the food and beverages sector, which increased by 1.9 percent. This section saw a 12.2 percent rise in vegetable prices, a 3.5 percent increase in fruits, and a 0.3 percent rise in meat and poultry expenses. 

The alcoholic beverages and tobacco segment witnessed a monthly rise of 0.8 percent, while the health care sector saw an increase of 0.4 percent. 

Within healthcare, outpatient service costs climbed 0.8 percent in September compared to the previous month, while hospital expenses rose 1 percent over the same period. 

On an annual basis, alcoholic beverages and tobacco prices surged 25.3 percent, followed by housing, water, electricity, and fuel, which went up 18.2 percent. 

The food and beverages category recorded a 0.3 percent increase year on year, while clothing and footwear costs advanced 14.4 percent during the same period. 

In February, global credit rating agency Moody’s affirmed Egypt’s Caa1 long-term foreign and local currency rating with a positive outlook. 

It stated that the positive outlook reflected the government’s measures to control inflation and interest rates. 

Earlier this month, Egypt’s Central Bank slashed interest rates by 100 basis points, marking the fourth reduction this year, citing subdued inflationary pressures amid economic growth of about 5 percent in the second quarter.