Back to the complete issue
Sunday, 11 November 2018

Monthly, annual headline inflation accelerate again in October

Inflation accelerates again in October: Annual headline inflation rose to 17.5% in October, up from 16% the previous month, CAPMAS data showed (pdf). The state statistics agency attributed the rise to increases in vegetable prices and school fees. Monthly headline inflation also rose last month, coming in at 2.8% against 2.5% in September.

Accelerating inflation means no rate cuts in the near future: The central bank’s monetary policy committee is set to meet this Thursday, 15 November to review interest rates. Analysts had said last month that the central bank is unlikely to cut interest rates, particularly in light of the emerging markets sell-off, rising global oil prices, and impending fuel subsidy cuts here at home. The Institute of International Finance also predicted that monetary easing will not resume before 2019, when it expects headline inflation to decline to below 10%. The CBE had previously said that it expects inflation to come in at c.13% in 4Q2018 before dropping to the single digits over the course of next year “after the temporary effect of fiscal supply shock dissipates.”

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.