VenturesNow

Egypt’s headline inflation surges but core inflation eases to offer some hope

Published

1 year ago

September 10, 2023

Egypt’s official data agency, CAPMAS has revealed that the country’s headline inflation, driven the basket of goods that comprise consumer price index, rose higher than expected to hit 37.4% in August from 36.5% in July.

Data from CAPMAS on Sunday however shows core inflation, which strips out volatile items like food and fuel, ease slightly to 40.4% from 40.7% in July and 41% in June.

Headline inflation in July was 36.5% and in June 35.7%, both also all-time highs. That is, month-on- month, it rose 1.6% in August, down from 1.9% in July and 2.08% in June.

Some experts like Allen Sandeep at Naeem Brokerage have suggested that the gradual month-on-month decline could be a positive sign. Holding that “It is tentatively a sign that prices are consolidating at these levels”, he said.

According to the consensus prediction of the 14 analysts surveyed last week, annual urban consumer inflation increased to 37.1% in August. The previous high of 32.95% was recorded in July 2017.

The economy of Egypt has been declining recently. According to a financial ratings agency, Moody’s, Egypt is one of the five nations in the world most at risk of defaulting on its external debt. In recent years, Egypt has relied heavily on bailouts from Gulf nations and the IMF.

Egypt is currently ranked 11th out of 14 nations in the Middle East and North Africa, and its overall score is lower than the average for the area and the entire world.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”