Annual core inflation continues its upward trend recording highest rate since December 2017: CBE

Non-food inflation continues to increase for 11th consecutive month recording highest rate since May 2019

Egypt's annual headline urban inflation increased to 15% in September 2022, from 14.6% in August 2022, according to the Central Bank of Egypt.
The increase in September's 2022 annual inflation was driven by non-food inflation; which was the case since May 2022. Monthly headline urban inflation recorded 1.6% in September 2022 compared to 1.1% in September 2021.
Monthly headline urban inflation in September 2022 was, basically, driven by higher prices of core items reflecting higher prices of core food, retail items, and services. This coincided with the start of the seasonal impact of the new academic year which is expected to peak next month, among other factors. In addition, higher regulated prices mainly reflected higher tobacco prices as announced by Eastern Company on 4 September, public health care items as well as higher rationed rice prices.
On an annual basis, headline inflation during September 2022 was driven by the higher annual contribution of non-food items. Non-food inflation continued to increase, for the eleventh consecutive month, to record 12% in September 2022 from 10.8% in August 2022, which is its highest rate since May 2019. Meanwhile, annual food inflation recorded 21.7% in September 2022 down from 23.1% in August 2022.
Driven by higher broad-based annual contributions, annual core inflation continued its upward trend that started a year ago, to record 18% in September 2022 from 16.7% in August 2022, the highest rate since December 2017. Monthly core inflation recorded 1.6% in September 2022, compared to 0.4% in September 2021.
Nationwide annual inflation remained stable at 15.3% in September 2022. Meanwhile, annual rural inflation declined to record 15.6% in September 2022, from 16% in August 2022.
Prices of regulated items increased by 0.9% which contributed 0.21% to monthly headline inflation. This was mainly due to the increase in tobacco prices, which were announced by Eastern Company early in September 2022, as well as an increase in the prices of public health care items, and rationed rice.
Prices of fresh vegetables and fruits also increased 7.5% and 0.2%, respectively. Together, they contributed 0.22% to monthly headline inflation.
Prices of dairy products increased by 3.4% which contributed by 0.12% to monthly headline inflation.
Prices of poultry increased by 3.1% which contributed 0.12% to monthly headline inflation.
Prices of eggs increased by 6.2% to contribute by 0.08% to monthly headline inflation.
Prices of fish and seafood increased by 1.3%, to contribute by 0.03% to monthly headline inflation.
Prices of market rice declined by 6.0%, to contribute by negative 0.08% to monthly headline inflation.
Prices of other core food items including fats and oils, bread, pulses, tea, among others, increased to contribute by 0.25%age points to monthly headline inflation.
Prices of retail items increased by 2.6%, to contribute by 0.35% to monthly headline inflation. This was mainly due to broad-based increases in the prices of household cleaning products, stationary and supplies, personal care products, clothing, and medical products, among others.
Prices of services increased by 0.7%, to contribute by 0.25% to monthly headline inflation. This was mainly due to higher prices of expenditures on restaurants and cafes, handcrafts and outpatient services, private hospital care, and rental values.
Monthly core inflation was affected by price changes of the aforementioned core CPI items. Core food items contributed by 0.73% to monthly core inflation. Retail items contributed by 0.49% to monthly core inflation. In addition, services contributed by 0.34%age points to monthly core inflation.