CAIRO - 10 November 2024: In a recent report, the Central Agency for Public Mobilization and Statistics (CAPMAS) announced that Egypt's inflation rate experienced a slowdown in October 2024. The consumer price index (CPI) reached 240 points, representing a 1.5% increase compared to September’s 2.3% rise. This deceleration has been largely attributed to a reduction in certain food prices.
The easing of the monthly inflation rate was significantly impacted by a 2.1% decrease in fruit prices, alongside a slight 0.4% drop in vegetable costs. The hotel service sector also reported a 0.4% reduction, contributing to the overall slowing of inflation. Despite these reductions, year-on-year inflation remained high, registering at 26.3% in October 2024. This figure, although lower than the 38.5% recorded in October 2023, still indicates substantial annual price pressures.
The food and beverage sector was notably affected, with a year-over-year price surge of 26.9%, encompassing a dramatic 36.7% increase in meat prices. Other key items like dairy, grains, and eggs also saw significant price hikes, reflecting their crucial role in household expenditures.
In October, meat and poultry prices witnessed a monthly rise of 3.3%, while fish and seafood prices climbed by 2.1%. Dairy products and eggs saw a more modest increase of 1.2%. Energy and housing maintenance costs also surged, with a notable 7.2% jump, driven by higher electricity, gas, and fuel prices. Healthcare costs rose by 3.5%, spurred by increasing outpatient service fees and hospital expenses.
The clothing and footwear sector reported an annual price hike of 24.4%, while healthcare services recorded a 31.3% surge. Prices in the restaurant and hotel industry saw a significant 30.8% increase year-on-year.
Earlier last week, Egypt’s Prime Minister, Mostafa Madbouly, assured that there would be no tax increases. In a recent meeting with parliamentary leaders, Madbouly highlighted the government’s strategy to implement tax incentives aimed at boosting investment. He reiterated the administration’s dedication to pursuing economic reforms despite the difficulties involved.
Madbouly emphasized that these reforms would incorporate social protection measures to assist eligible citizens.
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