Inflation cools for second consecutive month, hitting 13.9% in July

Good afternoon, friends, and welcome to the start of another workweek. It’s a calm day on the news front, and at home, we’re celebrating a cooling inflation rate.

THE BIG STORY TODAY-

Annual headline urban inflation cooled further for the second consecutive month to hit 13.9% in July, down from 14.9% in June, boosted by lower than anticipated food and beverage inflation, according to data from state statistics agency Capmas. On a monthly basis, inflation fell 0.5% compared to a 0.1% drop in the previous month.

Fueling the trend: The decline is mainly attributed to an easing in food and beverages prices — the largest component of the basket of goods and services used to calculate headline inflation — which rose 3.4% y-o-y in July, compared to 6.9% in June. On a monthly basis, food and beverages inflation dipped noticeably by 3.0%.

THE BIG STORY ABROAD-

It’s a calm Sunday as far as international business news is concerned, with the latest developments between Russia and Ukraine dominating headlines. The White House is reportedly considering inviting Ukrainian President Volodymyr Zelenskyy to the Alaska Summit, where US President Donald Trump is set to meet his Russian counterpart Vladimir Putin, according to sources cited by CNBC. “The President remains open to a trilateral summit with both leaders,” a senior White House official said.

ICYMI- On Friday, Trump alluded to a ceasefire deal that would entail a “land swap” between Russia and Ukraine, which Zelenskyy promptly opposed, noting that he “will not give their land to occupiers.”

*** It’s Inside Industry day — your weekly briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.

In today’s issue: We’re taking a look at the government’s efforts to put Egypt on the global EV manufacturing map.

☀️ TOMORROW’S WEATHER- Stay cool and stay indoors. Temperatures in Cairo are set to peak at 39°C, before cooling down to 25°C. Up north, it’s a similar story with a high of 30°C and a low of 26°C, according to our favorite weather app.