Egypt: Inflation slows to an over six-and-a-half year low in August
Consumer prices increased 0.7% in August compared to the previous month, down from the 1.8% increase in July. The slower price increase in August was due to a weaker increase in prices for both housing, water, electricity, gas and other fuels, and transportation, both of which jumped in July following a cut in government fuel subsidies that month.
Inflation decelerated to 7.5% in August from 8.7% in July, dropping further below the 9.0% midpoint of the Central Bank’s Q4 CY 2020 target range of 6.0% to 12.0% and marking the lowest reading since January 2013. August’s reading was driven by a weaker increase in prices for both food and beverages, and housing, water, electricity, gas and other fuels.
Core inflation, which excludes energy prices, slowed to 4.9% in August from 5.9% in July. Average inflation over the past 12 months moderated to 12.8% in August from 13.4% in July.