Inflation in Egypt Declines in October

A survey conducted by Reuters on Tuesday revealed that Egypt's inflation rate is expected to decline in October from a record high of 38 percent in September, as food prices rise moderately. However, analysts state that the end of Egypt's battle with inflation still seems distant. The average expectations of 19 analysts included in the survey indicate that the annual inflation rate for urban consumers is expected to drop to 37.1 percent from 38.0 percent in September. Inflation has steadily accelerated since June, when it reached a record level of 35.7 percent, surpassing the previous record of 32.95 percent set in July 2017. Ralph Wigert from Standard & Poor's noted: "The slight decline in the inflation rate from last month is likely supported by the decision to reduce retail prices for some basic food items for six months starting mid-October 2023 with exemptions from customs duties." He added: "This is likely to help contain inflationary pressures temporarily." On October 10, the government announced in its battle against inflation that it had reached an agreement with private sector producers and retailers to reduce prices of beans, lentils, dairy products, pastries, rice, sugar, chicken, and eggs by 15 to 25 percent for six months. On Friday, the government announced increases in gasoline prices of up to 14.3 percent amid rising global prices and a depreciating currency.