October inflation jumps 1.3%, annual rate continues to slow

Egypt’s monthly inflation rate rose 1.3% in October, driven by a sharp increase in the cost of vegetables and dairy products, even as the annual rate fell for a fifth consecutive month, according to data released Monday by the Central Agency for Public Mobilization and Statistics.

Vegetable prices surged 12.9% month-over-month, while dairy, cheese, and eggs climbed 1.9%, pushing overall consumer prices higher. These increases outweighed declines in fruit prices, which fell 10.6%, and seafood, which dropped 0.3%.

Annual inflation had slowed to 10.1% in October, down slightly from 10.3% in September, continuing a trend that reflects the impact of two years of aggressive monetary tightening. But that relief may prove short-lived.

On Oct. 17, Egypt’s Ministry of Petroleum and Mineral Resources imposed steep fuel price hikes, raising diesel and all gasoline grades by two Egyptian pounds per liter.

The government has long struggled to manage inflation while implementing IMF-backed austerity reforms and subsidy cuts. The latest fuel hikes, introduced just as the annual rate was slowing, risk rekindling inflationary pressure in November.