Easing Inflation: Egypt's Economic Turnaround

Egypt's urban consumer price inflation saw a slight reduction, dropping to 11.7% in September from 12% in August, according to data from the statistics agency CAPMAS.

This figure exceeded the expectations of analysts in a Reuters poll, who had forecasted a fall to 11%, continuing a two-year trend of declining inflation rates as the government enacts tighter monetary policies.

The record-high inflation rate of 38% in September 2023 has been significantly lowered, supported by an $8-billion IMF financial package signed in March 2024. Egypt's central bank further responded by cutting its overnight lending rate significantly on October 2.

(With inputs from agencies.)