The Clap
Inflation in Egypt increased during September 2022 to reach 15% YoY, an increase from 14.6% in August 2022.
The Deets
The rise in inflation was mainly due to increases in food prices, cigarettes, and the depreciation of the EGP. The food and beverage sector alone saw a 21.5% increase in inflation YoY.
Inflation in September 2022 is the highest inflation recorded since November 2018. Most analysts expected inflation in September to be between 14.8% to 15%.
Why this Matters
In the CBE’s last meeting, interest rate hikes were not used to control inflation, but banks’ reserve requirements were raised from 14% to 18%, in an attempt to bring inflation to the target level of 5%-9%.
What Now
The inflation rate is more likely to be affected if the Fuel Automatic Pricing Committee decides to increase petroleum products’ prices in its upcoming meeting.
