{"id":607890,"date":"2023-10-11T00:00:00","date_gmt":"2023-10-11T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/10\/11\/inflation-hit-a-new-record-high-in-september-coming-in-ahead-of-analyst-expectations\/"},"modified":"2023-10-11T00:00:00","modified_gmt":"2023-10-11T00:00:00","slug":"inflation-hit-a-new-record-high-in-september-coming-in-ahead-of-analyst-expectations","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/10\/11\/inflation-hit-a-new-record-high-in-september-coming-in-ahead-of-analyst-expectations\/","title":{"rendered":"Inflation hit a new record high in September, coming in ahead of analyst expectations"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong> Inflation hit a fresh all-time high in <\/strong><strong> September <\/strong> as the impact of the foreign-currency shortage and a series of devaluations continued to stoke price pressures. Consumer prices in urban areas accelerated to 38% y-o-y from <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4679aee6-2384-41d3-b930-cb4678b4e942\" style=\"\" rel=\"noopener\">37.4% in August<\/a>, making September the fourth consecutive month of record highs, according to figures released yesterday by state statistics agency <a target=\"_blank\" href=\"https:\/\/ent.news\/2023\/10\/512.pdf\" style=\"\" rel=\"noopener\">Capmas (pdf)<\/a>. Headline inflation has been running above 30% since February.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> The figures were higher than expected: <\/strong> The median forecast in a recent <a target=\"_blank\" href=\"https:\/\/www.nasdaq.com\/articles\/poll-egypt-inflation-seen-climbing-to-record-37.6-in-september\" style=\"\" rel=\"noopener\">Reuters poll<\/a> of analysts had inflation rising to 37.6%<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> No surprises as food and drink price rises were once again to blame: <\/strong>Food and beverage prices \u2014 the largest components of the basket of goods and services used to calculate inflation \u2014 hit a record high of 73.6% y-o-y, up from 71.4% in August. The figure was driven by fruit and vegetable prices, which more than doubled y-o-y.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> Monthly inflation figures inched up after three consecutive months of slowing prices: <\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">The past three monthly inflation reports saw the rate of inflation slowing m-o-m, prompting some short-lived optimism about the possible onset of disinflation. September bucked the trend, coming in at 2%, up from 1.6% the month before.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> Core inflation continued to slow: <\/strong>Core inflation \u2014 which excludes volatile items such as food and fuel \u2014 came in at 39.7% y-o-y in September, down from 40.4% the month before, according to <a target=\"_blank\" href=\"https:\/\/www.cbe.org.eg\/en\/news-publications\/news\/2023\/10\/10\/11\/04\/cpi-press-release-september-2023\" style=\"\" rel=\"noopener\">central bank data<\/a>. However, monthly core inflation rose to 1.1% from 0.3% the month before, <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4679aee6-2384-41d3-b930-cb4678b4e942\" style=\"\" rel=\"noopener\">likely due to seasonal factors<\/a> like the back-to-school period and an increase in tourism.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> Remember: <\/strong><a target=\"_blank\" href=\"https:\/\/www.cbe.org.eg\/en\/monetary-policy\/inflation-target#inflationtargets\" style=\"\" rel=\"noopener\">The CBE\u2019s average inflation target<\/a> is 7% (\u00b12%) by 4Q 2024 and 5% by 4Q 2026. This target has been in place since December 2022. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> No relief in sight: <\/strong> Inflationary pressures will likely remain high over the coming 6-9 months due to the anticipated devaluation of the EGP and weakly anchored inflation expectations, economist Hany Genena told Enterprise.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> The government is trying to put a lid on rampant food price inflation: <\/strong>The government and private-sector food producers and traders recently <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/3d240d47-331c-491e-8011-e5092d22dfdb\" style=\"\" rel=\"noopener\">agreed to<\/a> <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/3d240d47-331c-491e-8011-e5092d22dfdb\" style=\"\" rel=\"noopener\">reduce prices<\/a> of 10 food items by 15-25% from 14 October. The move should help to temporarily ease the rising cost of living on low- and middle-income households, Geneina said.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> The international press also has the story: <\/strong><a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/africa\/egypts-inflation-quickens-record-380-september-2023-10-10\/\" style=\"\" rel=\"noopener\">Reuters<\/a> | <a target=\"_blank\" href=\"https:\/\/www.thenationalnews.com\/mena\/egypt\/2023\/10\/10\/egypts-inflation-soars-to-record-38-in-september-amid-higher-fruit-and-vegetable-prices\/\" style=\"\" rel=\"noopener\">The National<\/a> | <a target=\"_blank\" href=\"https:\/\/english.news.cn\/20231010\/7c752744fd284964a1931eb9b9977b5e\/c.html\" style=\"\" rel=\"noopener\">Xinhua<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inflation rose to record highs for the fourth consecutive month<\/p>\n","protected":false},"author":1,"featured_media":607891,"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":[330,271,104,72,182,349],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-607890","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","tag-interest-rates","wpautop","entry"],"acf":{"mongo_id":"d1c1b9b4-919d-41f5-a4f3-85357bcc52ad","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/10\/528.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt\u2019s annual inflation rose to new record high in September, beating analyst expectations","related_issue":[607883],"teaser":"Inflation rose to record highs for the fourth consecutive month","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/10\/.f2edeaa0-968f-4f55-b74e-c8c95cad9116.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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The annual rate of inflation rose to 16.2% during the month from 15.0% in September, according to figures (pdf) released Thursday by state statistics agency Capmas. This\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\/2022\/11\/194.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":556077,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/11\/inflation-hits-20-month-high-in-september\/","url_meta":{"origin":607890,"position":1},"title":"Inflation hits 20-month high in September","author":"enterpriseam admin","date":"11 October 2021","format":false,"excerpt":"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\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\/10\/113.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":581490,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/12\/food-prices-hit-record-high-on-january-devaluation\/","url_meta":{"origin":607890,"position":2},"title":"Food prices hit record high on January devaluation","author":"enterpriseam admin","date":"12 February 2023","format":false,"excerpt":"Inflation hit a fresh five-year high in January on the back of a record increase in food prices due to the devaluation of the EGP. Figures released on Thursday by state statistics agency Capmas showed that annual urban inflation jumped to 25.8% y-o-y in January, up from 21.3% the month\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\/2023\/1\/Market-1600.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":589916,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/11\/inflation-soars-to-record-high-in-june\/","url_meta":{"origin":607890,"position":3},"title":"Inflation soars to record high in June","author":"enterpriseam admin","date":"11 July 2023","format":false,"excerpt":"Eid spending drove price hikes above analysts\u2019 expectations","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\/2023\/7\/356.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":585117,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/11\/inflation-nears-record-high-in-march-as-impact-of-devaluation-bites\/","url_meta":{"origin":607890,"position":4},"title":"Inflation nears record high in March as impact of devaluation bites","author":"enterpriseam admin","date":"11 April 2023","format":false,"excerpt":"Food prices hit fresh record high but core inflation slows","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\/2023\/4\/466.jpg?fit=%2C&ssl=1&resize=350%2C200","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":607890,"position":5},"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":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/607890","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=607890"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/607890\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/607883"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/607891"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=607890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=607890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=607890"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=607890"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=607890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}