Egypt/ Inflation September 2020 reading
Despite the slight pick-up, lower food prices kept inflation significantly low: The disinflationary trend that continued to gather pace over the last couple of months was interrupted in September due to the unfavorable base effect and a more sluggish fall in food prices. Annual urban headline inflation picked up slightly to 3.7% in September, up from 3.4% in August, albeit still significantly below the CBE’s target range of 9% ± 3%. On a monthly basis, inflation accelerated to +0.3% in September, up from -0.2% in August, on the back of (1) the ongoing process of reopening the economy and (2) the improvement in consumption sentiment, driven by the back-to-school season.
Mona Bedeir
Senior Economist
Tel.: +202 3300 5722