Good afternoon, friends, the weather seems to be falling into pace with a cooler-than-usual news cycle this week, despite big (but few) stories dominating the headlines.

THE BIG STORY TODAY-

📍 Inflation rises again after four-month deceleration: Annual headline urban inflation rose by 0.8 percentage points in October to end the month at 12.5%, largely on the back of higher fuel and food and beverage prices, according to data from state statistics agency Capmas seen by EnterpriseAM. October’s reading marks the end of a four-month streak of easing price inflation.

The rise was mostly expected, with some forecasts closer than others. “October’s inflation came slightly lower than our estimate of 12.6% y-o-y and 1.9% m-o-m,” HC Securities’ Heba Mounir told us. The reading was also below the 13.0% inflation figure Al Ahly Pharos had expected, as the decline in food items was offset by an increase in transportation and fuel prices, head of Research Hany Genena told EnterpriseAM. Meanwhile, the reading was higher than forecasts from Capital Economics and Reuters ’ poll, both of which had expected inflation to land at 12.0%.

The culprits: Housing, water, electricity, gas, and other fuel prices were the primary drivers of inflation last month, with prices rising 27.1% y-o-y during October, after Egypt raised fuel prices for the second time this year in October. Prices of alcoholic beverages, tobacco, and narcotics rose by 26% y-o-y, alongside healthcare services, which rose by 28.4% y-o-y.

The prices of food and beverages — the largest component of the basket of goods and services used to calculate headline inflation — also inched up slightly, rising 1.5% y-o-y in October compared to 1.4% in September. This was fueled by a 4.8% y-o-y rise in bread and cereal prices, and a 36.4% y-o-y rise in fruit prices.

AND- Egyptian Group for Multi-Purpose Terminals will establish two terminals at the new Abu Qir Port and Gargoub Port at a cost of USD 230 mn, CEO Abdelkader Darwish told EnterpriseAM on the sidelines of TransMEA. The state-owned company will ink an MoU for the project with the Alexandria Port Authority today, Darwish told us.

The two terminals are slated for completion within 18 months of signing the final contracts, once market studies have been finalized. The proposed terminal at the new Abu Qir Port is estimated to cost USD 110 mn, covering an area of 360k sqm and featuring quays with a total length of 800 meters. The Gargoub Port terminal is estimated to cost USD 120 mn, covering an area of 700k sqm with quays at a total length of 2k meters.

THE BIG STORY ABROAD-

🌐 The world’s business press — along with Wall Street — seem optimistic about a potential end to the US government shutdown. Still leading the digital front pages this afternoon is news that after 40 days of political deadlock — the longest in US history — the Senate voted late Sunday night to advance legislation that could finally reopen the federal government.

Investors have been responding enthusiastically to the possible breakthrough, with Nasdaq futures up 1.4% and S&P 500 futures up 0.9% at the time of writing and just before Wall Street kicks off trading for the day. (New York Times | Bloomberg | CNN | Reuters | CNBC)

ALSO- In what is being described as a major turning point for Syrian politics, Syrian President Ahmed Al Sharaa is set to meet with US President Donald Trump in the White House later today — a first for any Syrian head of state. The two leaders are expected to discuss the remaining sanctions imposed on Syria. (Reuters | Washington Post | New York Times | Guardian)

☀️ TOMORROW’S WEATHER- We’re finally in for some cooler days, with temperatures in the capital tomorrow set to peak at a breezy 28°C before cooling down to 19°C, according to our favorite weather app.

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