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Egypt’s inflation unexpectedly accelerated to 26.2% in August

Published

4 months ago

September 10, 2024

Egypt’s annual urban inflation rate unexpectedly rose to 26.2% in August from 25.7% in July, according to figures from the CAPMAS statistics agency released on Tuesday.

Prices rose 2.1% month on month, outpacing a 0.4% increase in July. Food prices increased by 1.8% in August, after falling by 0.3% in July, and were 29.0% higher than a year ago.

According to a poll of 19 economists, August urban inflation is anticipated to drop to a median of 25.1%.

Sara Saada of CI Capital was one of the few analysts who forecast that inflation would rise.

“We expected this, as the August reading reflects energy price hikes that were announced in the last week of July. This included diesel, that has a broad-based effect,” she said, speaking to Reuters after the figure was announced.

Prices have risen in the last month due to rising summer product prices, 10-15% fuel hikes around the end of July, a 25-33% increase in metro tickets at the beginning of August, and a 21-31% increase in energy bills, partially in August.

Inflation has been progressively dropping since September’s record high of 38.0%, and the central bank’s real overnight borrowing rate, at 27.25%, became positive in July for the first time since January 2022.

Egypt is one of Africa’s largest economies. In 2022, it ranked second after Nigeria, with a GDP of over 475 billion US dollars.

Although many economies throughout the world experienced contractions owing to the coronavirus (COVID-19) epidemic, the country maintained a positive real GDP growth rate over the same period.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

5 days 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.

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

Published

6 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.”