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Egypt Central Bank Gets Reprieve as Monthly Inflation Slows

  • Monthly inflation rate at lowest level since subsidy cuts
  • Annual inflation squarely within central bank’s target range
Overseas Egypt T-Bill Holdings Drop for First Time Since Float
Photographer: Shawn Baldwin
Updated on

Egyptian consumer prices rose at their slowest monthly rate since May, offering fresh evidence that the impact of fuel price hikes was abating and giving the central bank room to shift its focus from inflation to investments.

Monthly inflation in August eased to 1.8 percent compared to 2.4 percent the previous month, according to data reported by CAPMAS, the state-run statistics agency, its slowest pace since the government began enacting another round of subsidy cuts and rate hikes. The annual rate accelerated to 14.2 percent compared to 13.5 percent in July -- still squarely within the central ban’s target range of 13 percent (+/- 3 percentage points).