RIYADH: Egypt’s monthly inflation rose 1.3 percent in October, bringing the consumer price index to 264.3 points as price pressures continued to build, according to official data.
Figures from the Central Agency for Public Mobilization and Statistics showed the annual inflation rate eased slightly to 10.1 percent in October from 10.3 percent in September.
The data comes as Egypt’s macroeconomic indicators show early signs of stabilization following currency and fiscal reforms introduced since early 2024.
In its latest report, CAPMAS stated: “The main reasons for this increase are attributed to the rise in prices of the food and beverages section by 1.2 percent, the alcoholic beverages and tobacco group by 0.7 percent, and the clothing and footwear section by 1.2 percent.”
Housing, water, electricity, gas, and fuel costs increased 5 percent month on month, while household furnishings rose 0.5 percent and health care services edged up 0.2 percent.
The report noted that transportation and recreation sectors each recorded 0.1 percent growth.
“This occurred despite a decrease in the prices of audio, video, photography, and information processing equipment by 1.8 percent and organized tours by 0.4 percent,” the statement said.
CAPMAS noted that restaurant and hotel prices rose 0.2 percent overall, even as hotel service charges dropped 0.7 percent. The miscellaneous goods and services category climbed 1.1 percent.
In October, S&P Global Ratings upgraded Egypt’s long-term sovereign credit rating to “B” from “B-”, citing structural reforms and improved policy coordination under its International Monetary Fund-backed program. Fitch Ratings affirmed its “B” rating with a stable outlook during the same period.
S&P noted that reforms implemented over the past 18 months — including a shift to a more flexible foreign exchange regime and new investment incentives — have bolstered competitiveness and supported a recovery in growth.
The agency added that Egypt’s economy continues to benefit from the $8 billion loan program secured from IMF in March 2024, along with over $10 billion in additional financing from multilateral lenders.
Since the adoption of the flexible exchange-rate policy in early 2024, the Egyptian pound has traded under a market-based regime, helping stabilize the balance of payments and restore investor confidence.
