{"id":564976,"date":"2021-03-10T13:56:51","date_gmt":"2021-03-10T13:56:51","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/10\/inflation-edges-up-in-february-as-education-tobacco-costs-rise\/"},"modified":"2021-03-10T13:56:51","modified_gmt":"2021-03-10T13:56:51","slug":"inflation-edges-up-in-february-as-education-tobacco-costs-rise","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/10\/inflation-edges-up-in-february-as-education-tobacco-costs-rise\/","title":{"rendered":"Inflation edges up in February as education, tobacco costs rise"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-02\"><\/a> <strong>Annual urban inflation accelerated to 4.5% in February, up from 4.3% the previous month,<\/strong> state statistics bureau Capmas\u2019 <a href=\"https:\/\/ent.news\/2021\/3\/CAPMAS-February-Inflation.pdf\">latest reading (pdf)<\/a> showed. The increase came after a drop <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d2132ef4-bbe3-4fbf-adbe-0033fb050730\">in January<\/a>, when the headline rate fell from 5.4%, and <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d0d5a197-b4a0-48fd-9884-ef50416da06e\">in December<\/a>, when it slowed down from November\u2019s <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/790c7907-afb4-4e0c-9338-260b3db35554\">five-month high<\/a> of 5.7%. On a monthly basis, prices ticked up 0.2%, partly reversing a drop of -0.4% in January. The story is getting attention from <a href=\"https:\/\/www.reuters.com\/article\/idUSKBN2B20KY\">Reuters<\/a> and <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-03-10\/egypt-feb-urban-consumer-prices-rise-4-5-from-a-year-ago?sref=mmeFTDW1\">Bloomberg<\/a>.<\/p>\n<p><strong>The increase can be attributed to rising education, tobacco costs: <\/strong>It came as education costs surged 30% y-o-y nationwide Philip Morris International hiked the price of tobacco products <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/73b62528-a6f1-4837-b6d0-2e8440123d36\">in early February<\/a>. Rent also increased on a monthly basis, as well as the price of electricity and cooking gas, Capmas said. The increase in those outpaced a drop in food prices, which fell 0.5% y-o-y after having already dropped in January and December.<\/p>\n<p><strong>Annual core inflation<\/strong> \u2014 which strips out volatile items such as food and fuel \u2014 remained unchanged at 3.6% in February, according to <a href=\"https:\/\/ent.news\/2021\/3\/CPI_press-release_February-2021.pdf\">central bank figures (pdf)<\/a>. On a monthly basis, the core rate dropped to 0.3% from 0.5%.<\/p>\n<p><strong>Approaching the central bank\u2019s target:<\/strong> The headline rate is approaching the lower band of the CBEs target, although still short of 5%, putting it below the 7% (+\/- 2%) target the CBE wants to achieve by 4Q2022.<\/p>\n<p><strong>Could a commodities price rally have an impact down the road? <\/strong>There\u2019s \u201csuppressed consumer demand currently,\u201d but the reading will rebound to a monthly average of 0.8% and a 6.4% annual rate due to a potential price shock following the recent commodity price rally, HC Securities Monette Doss said. EFG Hermes, meanwhile, left its forecast for average inflation for the rest of the year unchanged at 6%, head of macroeconomic analysis Mohamed Abou Basha told us. Commodity prices have seen strong gains since the covid-inspired market crash last March, which could put upward pressure on domestic inflation in Egypt. We took a deep dive <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2fb13174-3377-49ef-8300-480e0abee206\">earlier this month<\/a> into what it could mean for the economy at large.<\/p>\n<p><strong>The uptick could prompt the CBE to leave rates on hold when it meets a week from tomorrow. <\/strong>Abou Basha is calling a hold and says that \u201csome base effects and rising commodity prices will lift inflation slightly higher in the next few months.\u201d Beltone Financial\u2019s Alia Mamdouh said in a note this morning that with stable food prices stable, especially with commodity prices rising significantly in recent weeks, the CBE is expected to keep rates on hold,<\/p>\n<p><strong>The CBE could also be reluctant to spook foreign debt investors: <\/strong>\u201cWhile inflation numbers support a 25-50 bps cut in rates, the rise in US Treasury yields and the risk for EM portfolio exits might prompt the MPC to keep rates unchanged,\u201d Pharos\u2019 head of research Radwa El Swaify said.<\/p>\n<p>(<strong>See Go With the Flow, below, for everything you need to know about how rising US <\/strong><strong>treasury yields could affect Egypt.<\/strong>)<\/p>\n<p><strong>The CBE\u2019s Monetary Policy Committee is due to meet on Thursday, 18 March to set <\/strong><strong>interest rates.<\/strong> The MPC left rates unchanged during their <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/89abd5a5-55ef-4740-a237-e949fae3d267\">most recent meeting<\/a> on 4 February, even when inflation was falling, as it cited muted economic activity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Annual urban inflation accelerated to 4.5% in February, up from 4.3% the previous month, state statistics bureau Capmas\u2019 latest reading (pdf) showed. The increase came after a drop in January, when the headline rate fell from 5.4%, and in December, when it slowed down from November\u2019s five-month high of 5.7%. On a monthly basis, prices [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"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":[10077],"tags":[330,104,633,182,724,4174],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-564976","post","type-post","status-publish","format-standard","hentry","category-speed-round-macro","tag-capmas","tag-economy","tag-enterprisepm","tag-inflation","tag-monetary-policy","tag-speed-round-macro","wpautop","entry"],"acf":{"mongo_id":"2ad47058-a1df-4f79-a48e-1b39c17beb79","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[564972],"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 edges up in February as education, tobacco costs rise - 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\/03\/10\/inflation-edges-up-in-february-as-education-tobacco-costs-rise\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Inflation edges up in February as education, tobacco costs rise\" \/>\n<meta property=\"og:description\" content=\"Annual urban inflation accelerated to 4.5% in February, up from 4.3% the previous month, state statistics bureau Capmas\u2019 latest reading (pdf) showed. The increase came after a drop in January, when the headline rate fell from 5.4%, and in December, when it slowed down from November\u2019s five-month high of 5.7%. On a monthly basis, prices [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/10\/inflation-edges-up-in-february-as-education-tobacco-costs-rise\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-10T13:56:51+00:00\" \/>\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=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/10\/inflation-edges-up-in-february-as-education-tobacco-costs-rise\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/10\/inflation-edges-up-in-february-as-education-tobacco-costs-rise\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Inflation edges up in February as education, tobacco costs rise\",\"datePublished\":\"2021-03-10T13:56:51+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/10\/inflation-edges-up-in-february-as-education-tobacco-costs-rise\/\"},\"wordCount\":525,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"CAPMAS\",\"economy\",\"EnterprisePM\",\"inflation\",\"monetary policy\",\"SPEED ROUND: MACRO\"],\"articleSection\":[\"SPEED ROUND: MACRO\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/10\/inflation-edges-up-in-february-as-education-tobacco-costs-rise\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/10\/inflation-edges-up-in-february-as-education-tobacco-costs-rise\/\",\"name\":\"Inflation edges up in February as education, tobacco costs rise - 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Core inflation dropped to 11.88% from 14.35% a month earlier. The drop in inflation rates paves the way for a potential interest rate cut later this month, Reuters suggests. \u201cThe Central Bank of\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":569013,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/02\/11\/annual-inflation-rises-marginally-to-7-2-in-january\/","url_meta":{"origin":564976,"position":1},"title":"Annual inflation rises marginally to 7.2% in January","author":"enterpriseam admin","date":"11 February 2020","format":false,"excerpt":"Annual urban inflation rose (ever so slightly) for the third consecutive month in January, inching up to 7.2% from 7.1% in December, according to Capmas figures released yesterday. On a monthly basis, prices rose 0.7% in January, after falling 0.2% in December. Food prices \u2014 which comprise around a third\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\/2\/143.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":570695,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/04\/12\/egypts-inflation-dips-slightly-in-march-to-5-1\/","url_meta":{"origin":564976,"position":2},"title":"Egypt\u2019s inflation dips slightly in March to 5.1%","author":"enterpriseam admin","date":"12 April 2020","format":false,"excerpt":"Inflation dips slightly in March to 5.1%: Annual urban inflation cooled to 5.1% in March from 5.3% in February, according to Capmas data out on Thursday. Price growth increased 0.6% on a monthly basis compared to 0.8% during the same month last year, and zero in February. This is 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":564507,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/02\/10\/headline-inflation-slowed-last-month-does-it-make-a-rate-cut-more-likely\/","url_meta":{"origin":564976,"position":3},"title":"Headline inflation slowed last month \u2014 does it make a rate cut more likely?","author":"enterpriseam admin","date":"10 February 2021","format":false,"excerpt":"Annual headline inflation in January slowed to its lowest level since September 2020. Urban headline inflation dropped for the second consecutive month to 4.3% from 5.4% in December 2020, and closing in on a 3.7% record low reading last September, figures from state statistics agency Capmas (pdf) and the central\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\/2\/429.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":565438,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/08\/inflation-uptick-as-ramadan-approaches\/","url_meta":{"origin":564976,"position":4},"title":"Inflation uptick as Ramadan approaches","author":"enterpriseam admin","date":"8 April 2021","format":false,"excerpt":"Annual headline inflation accelerated slightly to 4.8% in March, up from 4.6% in February, state statistics bureau Capmas\u2019 latest reading (pdf) showed. Annual urban inflation stood steady to 4.5% in March. On a monthly basis, headline inflation rose 0.6% m-o-m, compared to a 0.2% monthly rise in February. This is\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\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":632395,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/02\/11\/inflation-drops-to-17-1-in-january\/","url_meta":{"origin":564976,"position":5},"title":"Inflation drops to 17.1% in January","author":"enterpriseam admin","date":"11 February 2018","format":false,"excerpt":"Monetary policy victory lap time? Annual inflation dropped to 17.1% in January from 21.9% in December, CAPMAS announced on Thursday, according to Reuters. Core inflation also fell to 14.35% from 19.86% a month earlier. The CAPMAS report notes that vegetable prices dropped by 3.3% m-o-m nationwide, with food overall dropping\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\/2018\/2\/942.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/564976","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=564976"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/564976\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/afternoon\/564972"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=564976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=564976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=564976"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=564976"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=564976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}