Egypt’s annual urban consumer inflation rose to 13.6% year-on-year (YoY) in July from 13.2% in June, data from state statistics agency CAPMAS showed on Wednesday.
On a month-on-month basis, the inflation rate increased by 1.3%.
The jump to the highest level in three years was due to higher food and transport fuel prices. Food and beverages saw a 22.7% rise on an annual basis, while transport was 17% higher.
Egypt, the world’s biggest wheat buyer, imports nearly 80 percent of its wheat from the Black Sea region. The Russia-Ukraine conflict has hit shipments of the grain and caused supply bottlenecks and surging prices.
The Egypt’s fuel pricing committee raised gaoline prices by 2.3% on average in July during a quarterly review. The devaluation of the pound by 14 percent in March also had an effect on local prices.
London-based consultancy Capital Economics said that it expects inflation will peak at around 18% YoY in Q4.
“Looking ahead, we think that headline inflation will accelerate over the coming months as officials commit to a more flexible exchange rate, allowing the pound to weaken, and fuel prices are likely to be hiked further to reflect high global energy prices,” it said in a note.
