Good afternoon, friends, and congratulations on making it through another successful workweek, even if it was a short one.

**A QUICK PROGRAMMING NOTE- EnterprisePM is taking a publication holiday tomorrow in observance of Armed Forces Day, and will be back in your inboxes on Sunday afternoon. Until then, enjoy the long weekend.

THE BIG STORY TODAY-

Annual headline urban inflation eased for the fourth consecutive month in September, falling by 0.3 percentage points to 11.7%, backed by a y-o-y drop in meat and vegetables prices, according to data from state statistics agency Capmas seen by EnterpriseAM.

September annual headline reading was pretty muchexpected by our analysts, who saw headline inflation continuing its downward path during the month. The reading is also up by 0.7 percentage points from Reuters Poll’s median estimate of 11.0% y-o-y.

Driving the decline: September’s inflation reading was backed by an easing in food and beverages prices — the largest component of the basket of goods and services used to calculate headline inflation — with food prices increasing only 1.4% y-o-y during the month. This was backed by an annual dip in meat and vegetable prices by 0.6% and 20.9%, respectively. September reading was also supported by the favorable base effect and the 1.53% m-o-m EGP appreciation against the USD, HC’s Heba Monir added.

But it’s a different story on a monthly basis, with headline inflation accelerating for the second straight month, coming in at 1.8%, fueled by a 2.0 percentage point hike in food and beverage price inflation on the back of higher vegetable prices, which climbed 12.3% m-o-m, which Monir attributed to the high summer temperatures.

THE BIG STORY ABROAD-

We’ve got a mixed bag of headlines leading the front pages this afternoon. Among the stories getting plenty of ink:

Gold reaches historic high amid US government shutdown: Gold hit a record high of over USD 4k per ounce earlier today as investors flock toward safety amid economic uncertainty driven by the US federal government shutdown — now on its eighth day. Prices have now doubled in less than two years. While the surge is triggered by short-term uncertainty, the increase is largely owed to central banks diversifying away from a weakening USD. The spot price was at just over USD 4k per ounce at the time of publication. (Reuters | BBC | Financial Times)

CLOSER TO HOME- The Israeli military intercepted yet another aid flotilla headed toward Gaza earlier today. The Freedom Flotilla Coalition — carrying over USD 110k in medical aid — was attacked by Israel approximately 120 nautical miles from Gaza, according to a statement issued by the coalition. Nine boats have been intercepted, with some 145 activists detained. “In any other context, this would be deemed human trafficking and terrorism,” the coalition said in a separate statement.

The news follows the detainment of over 450 activists — including Sweden’s Greta Thunberg — aboard the Global Sumud Flotilla, of which 341 have been deported, according to the BBC. The interception comes as the Sharm El Sheikh-hosted Israel-Hamas peace talks enter their third day. (Guardian | Reuters | Washington Post)

☀️ TOMORROW’S WEATHER- We’re in for a cool day in Cairo tomorrow, with the mercury set to peak at a pleasant 29°C before cooling down to 17°C, according to our favorite weather app.

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