A market in Cairo, Egypt. Inflation is hitting consumers in the pocket from many directions, notably where subsidies on essentials like food have been reduced. EPA
A market in Cairo, Egypt. Inflation is hitting consumers in the pocket from many directions, notably where subsidies on essentials like food have been reduced. EPA

Egypt's annual urban inflation rate rises to 26.4% as subsidy cuts bite



Egypt's annual urban inflation rate increased to 26.4 per cent in September, from 26.2 per cent in August, as rising electricity, fuel and food costs drove prices higher, according to the latest data from the country's statistics agency Central Agency for Public Mobilisation and Statistics (Capmas).

On a month-on-month basis, inflation rose to 2.3 per cent in September compared to the previous month.

The increase in headline inflation was primarily driven by steeper price rises for previously subsidised goods and services.

Electricity prices jumped 14.9 per cent month-on-month in September, according to Capmas.

The sharp rise in inflation comes after government subsidy cuts, including price increases of up to 15 per cent for a range of fuel products and increases in electricity tariffs from 15 per cent to 40 per cent, in line with a statement from the Ministry of Electricity and Renewable Energy last month.

This followed a 300 per cent increase in the cost of subsidised bread in June.

Food prices also rose significantly this month, contributing to the rising inflation rate.

The cost of vegetables was up 12.4 per cent, dairy products rose by 2.8 per cent, and meat and poultry increased by 0.7 per cent.

Prices increased across other categories, too, data from Capmas showed.

Housing and utilities costs rose 5.1 per cent, driven by higher rental prices and maintenance costs. Furniture and household equipment prices increased 1.4 per cent, while restaurant and hotel prices went up by 1.1 per cent. Health care costs increased 2.1 per cent and education expenses rose 1.8 per cent.

Before August, the country's inflation rate had eased five months in a row after it hit a record high of 40 per cent in September of last year, according to Capmas.

Egypt's economy has faced several challenges in recent years, including high debt levels, inflation and a foreign exchange shortage.

However, the country has made progress in its economic reforms, which has earned it consecutive bailout deals worth more than $60 billion from international partners.

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Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

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The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
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The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
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