Egypt's Urban Inflation Drops to 13.9% in September, Core Inflation to 14.1%

The Central Bank of Egypt announced that annual urban consumer price inflation dropped to 13.9% last September, down from 14.5% in August, according to Zawya.

Annual food inflation recorded an increase to 7.2%, while core inflation declined to 14.1%, with nationwide annual inflation reaching 12.8%.

The report attributed this decline to a slowdown in non-food inflation and a favorable base effect, which compares current prices to elevated levels in the same period last year.

Inflation is one of the key indicators monitored by both investors and citizens, as it determines the purchasing power of salaries and savings, impacts spending and investment decisions, and is monitored by the central bank when setting interest rates.

What Do These Terms Mean?

Urban Inflation: The rate of increase in the prices of goods and services in Egyptian cities over a year compared to the same period of the previous year.

Core Inflation: The inflation rate after excluding the most volatile goods such as food and fuel, to provide a clearer picture of the general price trend.

Base Effect: The impact of comparison with a previous year whose prices were high or low, pushing the current figure down or up without an actual change in prices.