In surprise for some economists, official statistics agency CAPMAS reported a rise in Egypt’s annual urban consumer inflation which rose to 16 percent in September from 14.24 percent in August.
Inflation rose 2.5 percent month-on-month, largely driven by a 4.8 percent jump in the price of food and non-alcoholic beverages from August to September, Reuters reported.
The rising inflation rate “reflects the continuation of massive increases in the prices of fruits and vegetables on a monthly basis,” said head of research at Pharos Radwa El-Swaify.
Latest round of austerity measures taken in Cairo in June included deep fuel and electricity subsidy cuts as well as increases in transportation prices.
The measures came as part of the terms of a $12 billion International Monetary Fund loan programme Egypt agreed to in late 2016.
Core inflation, which strips out volatile items such as food, slipped to 8.55 percent in September from 8.83 percent in August, data from the central bank showed, according to Reuters.
“Depending on the data for October, if inflation continues to go up, we could start to wonder if we’re looking at a potential (interest) rate hike in November,” said Allen Sandeep, head of research at Naeem Brokerage.
