{"id":556077,"date":"2021-10-11T04:00:49","date_gmt":"2021-10-11T04:00:49","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/11\/inflation-hits-20-month-high-in-september\/"},"modified":"2021-10-11T04:00:49","modified_gmt":"2021-10-11T04:00:49","slug":"inflation-hits-20-month-high-in-september","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/11\/inflation-hits-20-month-high-in-september\/","title":{"rendered":"Inflation hits 20-month high in September"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a> <strong>Annual urban inflation continued its upward trend in September, hitting a <\/strong><strong>20-month high <\/strong>on the back of increasing food, healthcare and education costs, according to Capmas figures released yesterday. Headline urban inflation jumped to 6.6% last month, up from <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a7ce0952-23a6-4e3a-8296-21071df079fa\">5.7% in August<\/a>. This is the highest annual inflation rate since January 2020, when it <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/7d516919-c014-4ca0-80eb-af55172d83bd\">recorded 7.2%<\/a>. On a monthly basis, headline inflation rose by 1.1% following August\u2019s 0.1% rise.<\/p>\n<p><strong>Annual core inflation <\/strong><strong>inched up 0.3 percentage points to record 4.8% in September <\/strong>compared to 4.5% in August, Central Bank of Egypt <a href=\"https:\/\/ent.news\/2021\/10\/CPI_press-release_Sep-2021.pdf\">data (pdf)<\/a> shows. Meanwhile, monthly core inflation recorded 0.4% last month, compared to a 0.3% drop in August and 0.1% in September 2020. The overall rate in both urban and rural areas rose to 8% in September from 6.4% in August, according to <a href=\"https:\/\/ent.news\/2021\/10\/CAPMAS-Inflation-Sept.pdf\">Capmas figures (pdf)<\/a>. <a href=\"https:\/\/www.reuters.com\/world\/middle-east\/egypts-annual-urban-consumer-price-inflation-rises-66-sept-capmas-2021-10-10\/\">Reuters<\/a> also has the story.<\/p>\n<p><strong>Food and education prices were the main drivers: <\/strong>Food and beverages prices rose 13.1%, mainly driven by the prices of vegetables, which jumped 38.1%. Oils and fats prices saw the second-biggest price increase in the food and drink category at 18.3%. Prices in the education sector recorded a 29.8% annual increase, recreational and cultural activities saw a 6.5% rise, and housing and utilities prices rose 3.9%, which is attributed to the 9.1% increase in energy costs.<\/p>\n<p><strong>Nothing to worry about? (For now?): <\/strong>Despite reaching an almost two-year high, inflation remains within the CBE\u2019s target range, which is currently set at 7% (+\/-2%). The question is for how long, as the government\u2019s fuel pricing committee <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/390900ee-1b5c-47ff-89a3-2a7cc122897e\">raised fuel prices<\/a> for the third time this year by EGP 0.25 on Friday.<\/p>\n<p><strong>Inflation is on cabinet\u2019s radar: <\/strong>The Madbouly cabinet met yesterday to discuss rising commodity prices due to fuel price hikes, agreeing to mitigate the impact of the crisis on Egyptian markets, although exactly how they plan to do that was not announced. Prime Minister Moustafa Madbouly stressed that cabinet was working to ensure there would be no shortage of commodities in Egyptian markets <a href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/245251584311936\">in a statement released by the cabinet on Facebook<\/a>.<\/p>\n<p><strong>Analysts are not concerned: <\/strong>The inflation rise itself isn\u2019t something we should worry about, Esraa Ahmed, Pharos Holding economist told us. \u201cThe concern stems from global pressures and growing fears of global inflation and the Federal Reserve\u2019s plans to tighten monetary conditions with the rise in inflation in major markets, especially with developments in commodity markets, especially energy,\u201d she added. The US Federal Reserve has <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/11521b3f-57e8-41c8-98d5-e62e7091ce79\">signaled it may start tapering<\/a> its stimulus program as early as next month.<\/p>\n<p><strong>\u2026and not expecting rates to change anytime soon:<\/strong> \u201cWe expect the CBE to maintain interest rates at the upcoming Monetary Policy Committee meeting on 28 October. The need to maintain the lucrative carry trade [options] in the fixed income market, particularly with the rise in global rates that is posing a risk to inflows into emerging markets, backs our view,\u201d Beltone Financial said in a <a href=\"https:\/\/ent.news\/2021\/10\/Egypt-macro-10-October-2021.pdf\">report (pdf)<\/a>. <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/751fae4a-b5b0-4438-9f03-71c964e0f473\">During its last meeting<\/a>, the bank\u2019s Monetary Policy Committee (MPC) left interest rates on hold for a seventh consecutive meeting. The inflation hike comes only a few days after.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Annual urban inflation continued its upward trend in September, hitting a 20-month high on the back of increasing food, healthcare and education costs, according to Capmas figures released yesterday. Headline urban inflation jumped to 6.6% last month, up from 5.7% in August. This is the highest annual inflation rate since January 2020, when it recorded [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":556078,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7206],"tags":[330,271,104,72,182],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-556077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-capmas","tag-central-bank-of-egypt","tag-economy","tag-enterpriseam","tag-inflation","wpautop","entry"],"acf":{"mongo_id":"9734c255-82fb-4ede-9084-de53f4dbb70d","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/10\/113.jpg","photo_position":"above","related_issue":[556073],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Inflation hits 20-month high in September - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/11\/inflation-hits-20-month-high-in-september\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Inflation hits 20-month high in September\" \/>\n<meta property=\"og:description\" content=\"Annual urban inflation continued its upward trend in September, hitting a 20-month high on the back of increasing food, healthcare and education costs, according to Capmas figures released yesterday. Headline urban inflation jumped to 6.6% last month, up from 5.7% in August. This is the highest annual inflation rate since January 2020, when it recorded [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/11\/inflation-hits-20-month-high-in-september\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-11T04:00:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2021\/10\/113.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/11\/inflation-hits-20-month-high-in-september\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/11\/inflation-hits-20-month-high-in-september\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Inflation hits 20-month high in September\",\"datePublished\":\"2021-10-11T04:00:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/11\/inflation-hits-20-month-high-in-september\/\"},\"wordCount\":504,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/11\/inflation-hits-20-month-high-in-september\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2021\/10\/113.jpg?fit=%2C&ssl=1\",\"keywords\":[\"CAPMAS\",\"Central Bank of Egypt\",\"economy\",\"EnterpriseAM\",\"inflation\"],\"articleSection\":[\"Economy\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/11\/inflation-hits-20-month-high-in-september\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/11\/inflation-hits-20-month-high-in-september\/\",\"name\":\"Inflation hits 20-month high in September - 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Headline urban inflation rose slightly to 5.7% in August, up from 5.4% in July, according to state statistics agency Capmas. That\u2019s the\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/9\/141.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":573589,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/08\/11\/egypts-inflation-decelerated-in-july-to-4-2-below-expectations\/","url_meta":{"origin":556077,"position":1},"title":"Egypt\u2019s inflation decelerated in July to 4.2%, below expectations","author":"enterpriseam admin","date":"11 August 2020","format":false,"excerpt":"Annual headline inflation decelerated to 4.2% in July, down from an uptick to 5.6% in June, according to central bank figures (pdf). The central bank attributed the decline to a favorable base effect. Monthly headline urban figures remained restrained at 0.4% in July, compared to 1.8% during the same month\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/8\/75.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":564128,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/10\/inflation-hits-2021-high-but-still-rises-below-expectations\/","url_meta":{"origin":556077,"position":2},"title":"Inflation hits 2021 high but still rises below expectations","author":"enterpriseam admin","date":"10 August 2021","format":false,"excerpt":"Annual urban inflation accelerated in July on the back of rising energy and food prices, according to official figures from state statistics body Capmas. The headline urban rate climbed to 5.4%, up from 4.9% in June, as the government hiked fuel and electricity costs. Headline prices rose 0.9% on a\u2026","rel":"","context":"In &quot;SPEED ROUND: ECONOMY&quot;","block_context":{"text":"SPEED ROUND: ECONOMY","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/8\/401.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":593854,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/10\/13\/egypts-annual-headline-inflation-falls-again-in-september-clearing-the-way-for-more-cuts\/","url_meta":{"origin":556077,"position":3},"title":"Egypt\u2019s annual headline inflation falls again in September, clearing the way for more cuts","author":"enterpriseam admin","date":"13 October 2019","format":false,"excerpt":"Headline inflation falls again in September, clearing the way for more rate cuts: Egypt\u2019s annual headline inflation rate dropped for the fourth consecutive month to 4.3% in September from 7.5% in August, its lowest recording in nearly seven years, according to Capmas data (pdf) released on Thursday. Annual urban inflation\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/10\/2304.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":575329,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/10\/12\/annual-core-inflation-rose-to-3-3-in-september-from-0-8-in-august\/","url_meta":{"origin":556077,"position":4},"title":"Annual core inflation rose to 3.3% in September from 0.8% in August","author":"enterpriseam admin","date":"12 October 2020","format":false,"excerpt":"Annual core inflation rose to 3.3% in September from 0.8% in August, while monthly core inflation rose to 0.1% from -2.3% the previous month, the Central Bank of Egypt said yesterday (pdf). Core inflation strips out volatile items such as food and fuel. We reported in more detail yesterday the\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":574508,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/09\/13\/inflation-hits-10-month-low-as-food-prices-continue-to-fall\/","url_meta":{"origin":556077,"position":5},"title":"Inflation hits 10-month low as food prices continue to fall","author":"enterpriseam admin","date":"13 September 2020","format":false,"excerpt":"Inflation hits 10-month low as food prices continue to fall: Egypt\u2019s annual urban inflation decelerated to 3.4% in August \u2014 its lowest level since October 2019, according to Central Bank of Egypt (CBE) calculations (pdf) of Capmas figures. Inflation cooled last month from 4.2% in July. The falling headline rate,\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/9\/144.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/556077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=556077"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/556077\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/556073"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/556078"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=556077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=556077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=556077"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=556077"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=556077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}