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Egypt’s inflation rose to 27% in October— Report

Published

1 month ago

November 7, 2024

According to a poll released on Wednesday, higher school costs and a mid-month spike in fuel prices are said to have contributed to Egypt’s inflation, which rose to 27.0% in October.

According to the median prediction of 17 analysts, annual urban consumer inflation rose from 26.4% in September to 27% last month, marking the third consecutive month that annual inflation has increased. The information was gathered between October 31 and November 6.

“The rise in October will be primarily driven by a likely revision in education costs, typically accounted in October,” Sri Virinchi Kadiyala of ADCB said.

Egypt and the International Monetary Fund inked an $8 billion financial assistance deal in March that calls for Egypt to raise a number of domestic prices in order to adopt a less inflationary monetary policy.

According to central bank data, Egypt’s M2 money supply increased by an apparent all-time high of 29.59% year over year in September, contributing to inflation.

Fuel hikes of 10-15% around the end of July and another 11-17% increase in mid-October, a 25-33% increase in metro tickets at the start of August, and a 21-31% increase in energy tariffs in August and September all contributed to the annual inflation gain.

After hitting a record high of 38.0% in September 2023, inflation has been steadily declining. For the first time since January 2022, the central bank’s lending rate became positive in July, rising to 28.25%.

“We do still expect for inflation to slow over the remainder of Q4 and more sharply in Q1 2025 to allow the central bank to start its monetary loosening cycle,” James Swanston of Capital Economics said.

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Egypt’s November inflation drops to 25.5%, near 2-year low

Published

1 day ago

December 11, 2024

Ifeoluwa Dada

According to figures released Tuesday by statistics agency CAPMAS, Egypt’s annual urban consumer price inflation rate fell more than anticipated to 25.5% in November, the lowest level since December 2022.

Following the Russian invasion of Ukraine, which caused international investors to pull billions of dollars out of Egyptian treasury markets, inflation started to rise sharply in early 2022.

In September 2023, headline inflation reached a record high of 38.0%. It dropped to 26.5% by October 2024.

In a Reuters survey last month, 15 economists’ consensus prediction was for annual inflation to gradually decline to 26.4%.

According to CAPMAS statistics, headline inflation decreased from 1.1% in October to 0.5% in November every month.

Compared to October, when they fell 1.1%, food costs fell 2.8% over the month, making them 23.3% more than they were a year ago.

An increase in the money supply has been a major contributor to inflation. According to central bank data, Egypt’s M2 money supply increased by 29.54% in October compared to the same month last year.

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Nigeria creates N20bn consumer credit fund for domestic automakers

Published

3 days ago

December 9, 2024

Ifeoluwa Dada

In an attempt to increase demand for cars built domestically, the Nigerian government has established a N20 billion consumer credit facility programme.

The goal of the programme, which is run by the Nigerian Consumer Credit Corporation (Credicorp), is to keep customer interest rates to single digit.

The fund aims to remove obstacles that consumers face when purchasing cars on credit, according to Credicorp Managing Director/CEO Engr. Uzoma Nwagba, who spoke at the official launch/agreement signing between Credicorp and the National Automotive Design and Development Council (NADDC) in Abuja.

Nwagba said that the credit economy contributed to the creation of jobs and wealth for Nigerians as well as to the enhancement of residents’ quality of life.

According to him, the government is dedicated to helping the industry in order to guarantee its expansion and survival. According to him, the N20 billion fund was only the start, and if the initial support proves effective, the government intends to create a larger fund.

Earlier, Mr. Joseph Osanipin, the Director General of NADDC, stated that the industry’s expansion depends on the demand side of the car market being improved.

According to Osanipin, credit programs enable consumers to acquire brand-new cars of their choosing, but in the majority of prosperous nations, people do not pay cash for cars and other autos.

According to him, the program, which covers all types of autos such cars, vans, tricycles, and motorbikes, is available to all Nigerians and involves automakers that produce or assemble their goods entirely domestically.