Egypt’s annual urban headline inflation remained broadly stable for the third consecutive month at 26.5% in October 2024.

The primary driver of headline inflation continued to be non-food inflation, which recorded 26.0% in October 2024 compared with 25.5% in September 2024.

Inflation in October 2024 reflects the increase in administered prices (e.g. LPG and pharmaceutical products), as well as the increased prices of services such as rents, and expenditures on restaurants and cafes.

Meanwhile, annual food inflation has continued decelerating since 2023, reaching 27.3% in October 2024, the lowest in two years.

The steady decline is mainly due to the gradual easing of shocks and a favourable base effect from the high food inflation in 2023.

Annual core inflation declined to 24.4% in October 2024 compared with 25.0% in September 2024, while monthly core inflation registered 1.3% in October 2024 compared with 1.8% in October 2023, and 1.0% in September 2024.

Monthly core developments reflect higher prices of core food items, especially poultry, eggs, dairy, and seafood.

Monthly urban headline inflation recorded 1.1% in October 2024, compared with 1.0% in October 2023, and 2.1% in September 2024. Monthly headline developments reflect the impact of administered prices on non-food items, higher core food prices, and a seasonal decline in the prices of fresh fruits and vegetables.

Annual rural headline inflation recorded 26.1% in October 2024 compared with 25.6% in September 2024. Similarly, the annual headline inflation in the whole country increased to 26.3% in October 2024, up from 26.0% in September 2024.

In line with their seasonal pattern, prices of fresh fruits and vegetables declined by 2.3% and 1.1%, respectively. Together they contributed a negative 0.11% to monthly headline inflation.

Prices of poultry and eggs increased by 6.7% and 3.5%, respectively. Together they contributed 0.42% to monthly headline inflation. Prices of fish and seafood increased by 1.8%, contributing 0.05% to monthly headline inflation. Prices of dairy products increased by 0.7%, contributing 0.03% to monthly headline inflation.

Prices of other core food items—including unsubsidized bread, red meat, market sugar, pulses, confectionary, and market tea—contributed 0.08% to monthly headline inflation.

Prices of regulated items increased by 1.3%, contributing 0.27% to monthly headline inflation. This is mainly attributed to the recent price increase in LPG and pharmaceutical products but does not account for the recent fuel price increase announced on October 18, which will be reflected in the November inflation data.

Prices of services increased by 0.6%, contributing 0.17% to monthly headline inflation. The increase is mainly driven by higher expenditure on restaurants and cafes, and rents among other services.

Prices of retail items increased by 1.4%, contributing 0.19% to monthly headline inflation. This was mainly driven by personal care products, and household cleaning products, among other retail items.

Monthly core inflation was affected by price increases in the core CPI items. Core food items contributed 0.80% to monthly core inflation, while retail items contributed 0.27% and services 0.23%.

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