Egypt Inflation Eases to 14.5%, but Rate Cuts Wait
Egypt's September inflation is forecast at 13.9%, down from 14.5% in August, yet core inflation remains sticky near 14.3%, keeping rate cuts on hold. The post Egypt Inflation Eases to 14.5%, but Rate Cuts Wait appeared first on The Rio Times .
Egypt's inflation rate has eased to 14.5% in September, but the Central Bank of Egypt remains cautious about cutting interest rates. The country's inflation crisis began in 2022 due to the Ukraine war, causing global food and energy prices to surge. Urban headline inflation fell from 14.9% in July to 14.5% in August, while core inflation rose to 14.9% from 14.7%.
The September data will determine if the August uptick in core inflation was a temporary spike or the beginning of a new trend. The IMF program expires on 15 December 2026, and the CBE needs evidence that core inflation, monthly inflation, and inflation expectations are all declining before easing rates. Egypt's international reserves act as a buffer for the pound, and foreign investors must balance the allure of a controlled depreciation against the risk of disorderly adjustment.
The end of the IMF program presents a timing risk for investors, as successful completion would help anchor the pound and Eurobond demand, while delays or missed reforms could have negative consequences.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
