Egypt's annual inflation slows to 11.7 percent in September

Egypt's annual urban consumer price inflation slowed to 11.7 percent in September from 12 percent in August, data from statistics agency CAPMAS showed on Wednesday, a deceleration less than what analysts in a Reuters poll had anticipated.

The median forecast was for an easing to 11 percent in the poll of 15 analysts, extending a two-year downward trend as the government tightens monetary policy.

Month-on-month, prices rose by 1.8 percent in September, CAPMAS said. Food and beverage prices rose by an annual 1.4 percent and by a monthly 2.0 percent, it said.

The annual inflation rate has plunged from a record 38 percent in September 2023, helped by an $8 billion financial support package from the International Monetary Fund in March 2024.

M2 money supply growth, at an annual 22.88 percent in August, has also been slowing since Egypt signed the IMF package, central bank data showed.

Slowing inflation prompted Egypt's central bank to cut its overnight lending rate by 100 basis points on 2 October, following an 28 August cut of 200 basis points, this year's third and fourth reductions.