The Clap
The annual inflation rate in Egypt increased to 5.7% in August 2021 from 5.4% in the previous month, according to CAPMAS.
Who is affected🤷
Prices for food & beverages (F&B) rose 7.6% mainly as a result of a 17.9% increase in oils & fats prices. Vegetable prices also had a major impact on the prices for F&B as they increased by 13.8%.
Tobacco & alcoholic beverages saw a relatively slighter increase of 2.3%. Housing & utility prices rose 4.4% in August 2021 on the back of increased fuel & electricity prices at the start of July.
Why is this important🤔
August’s inflation rate is the highest since November 2020, due to a significant rise in prices of food (6.6% vs 4.9% in July), of which oils and vegetables. Still, the inflation rate remains well within the CBE’s target range of 5-9%.
In 2021, inflation in Egypt was at its lowest in April, when it recorded a 4.1% rate. Inflation is sure to be on the minds of CBE officials as they meet this Thursday to discuss interest rates.
