But some expected it to rise on a monthly basis after a series of price increases announced by the government.
In March, Egypt signed an $8 billion financial support package with the International Monetary Fund to help control a monetary policy that fuels inflation but requires price increases for a large number of local products.
As a result, the government has raised prices on a wide range of subsidized products to control a budget deficit that reached 505 billion Egyptian pounds ($10.3 billion) in the fiscal year ending June 30.
Annual urban consumer price inflation slowed to 25.1 percent in August from 25.7 percent in July, according to the median forecast of 19 analysts.
“We expect urban inflation to slow to 24.9 percent y/y in August due to a favorable base effect. On the other hand, we expect a 1.0 percent increase m/m due to the government raising energy and transportation costs at the beginning of August,” said Heba Mounir of HC Securities.
Naeem Holding for Investments expected the annual inflation rate in Egyptian cities to reach 24.8 percent, in addition to a 1.24 percent increase on a monthly basis from July.
These expectations came as a result of the increase in the prices of a number of services in the summer, such as fuel prices, which increased between 10 and 15 percent near the end of July, metro ticket prices, which jumped between 25 and 33 percent at the beginning of August, and electricity prices, which increased between 21 and 31 percent.
Inflation has gradually declined from a record high of 38.0 percent last September, making Egypt’s benchmark real interest rates positive in July for the first time since January 2022.
The median forecast of five analysts was for core inflation, which excludes volatile items such as fuel and some food, to fall to 23.9 percent from 24.4 percent in July.
The Central Agency for Public Mobilization and Statistics is scheduled to release inflation data for August on Tuesday.
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