Egypt's annual consumer price inflation rate rose to 7.1 percent in December 2019, the highest since August, from 3.6 percent in November. Prices rebounded for food & non-alcoholic beverages (1.8 percent vs -4.6 percent in November), namely fruits & vegetables (10 percent vs -11.9 percent), mainly due to higher demand during the festive season. Meanwhile, cost slowed mostly for housing & utilities (4.6 percent vs 4.7 percent); clothing & footwear (3.8 percent vs 5.5 percent); alcoholic beverages & tobacco (1.5 percent vs 1.7 percent); restaurants & hotels (10.9 percent vs 11.4 percent) and miscellaneous goods & services (5.3 percent vs 5.6 percent). Meantime, inflation remained steady for transport (at 16 percent); education (at 21.9 percent) and recreation & culture (at 13.8 percent). On a monthly basis, consumer prices went down 0.2 percent, after decreasing 0.3 percent in the previous month. Inflation Rate in Egypt averaged 9.45 percent from 1958 until 2019, reaching an all time high of 35.10 percent in June of 1986 and a record low of -4.20 percent in August of 1962. source: Central Bank of Egypt
Inflation Rate in Egypt is expected to be 6.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Egypt to stand at 9.00 in 12 months time. In the long-term, the Egypt Inflation Rate is projected to trend around 8.20 percent in 2020, according to our econometric models.
Egypt Inflation Rate
In Egypt, the headline Consumer Price Index (CPI) measures the change in the cost of a fixed basket of goods and services that are purchased by a representative sample of households from urban areas, which include Cairo, Alexandria, urban Lower Egypt, urban Upper Egypt, Canal cities and Frontier governorates. The most important categories in the headline CPI are Food and Beverages (40 percent of total weight); Housing, Water, Electricity, Gas and other Fuels (18.4 percent); Medical Care (6.3 percent) and Transportation (5.7 percent). Clothing and Footwear account for 5.4 percent of total index and Education for 4.6 percent. Hotels, Cafes and Restaurants represent 4.4 percent of total weight and Furnishings, Household Equipment and Routine Maintenance of the Dwelling for 3.8 percent. Miscellaneous Goods and Services account for 3.7 percent, Communications 3.1 percent, Recreation and Culture 2.4 percent and Tobacco and Related Products 2.2 percent.