Egypt Inflation Quickens to 14.6%, Fastest in Almost 4 Years

Inflation in urban parts of Egypt accelerated to its fastest level since November 2018 on the back of higher food costs, Reuters reported. Consumer prices climbed 14.6% from a year earlier in August, versus 13.6% the previous month, the state-run statistics agency CAPMAS said Thursday. Food and beverage costs, which make up the largest single component of the inflation basket, jumped 23.1%. On a monthly basis, price growth slowed to 0.9% from 1.3% in July. Inflation in Egypt is likely close to peaking after a run-up in food and energy costs that followed Russia’s invasion on Ukraine and the pound’s devaluation in March. Increases in input prices for non-oil companies have already slowed sharply, according to S&P Global, though businesses remained under pressure from higher fuel and raw material costs. While the government raised fuel prices in July, it said last month that the country is leaving bread subsidies unchanged for now. Authorities had previously vowed to reduce spending on the costly system that provides the staple foodstuff to an estimated 70% of the country’s 100-million-plus population. Read more.