Egypt’s annual inflation hit its lowest in a decade to reach 2.4 percent in October, the country’s statistics agency said on Saturday.
The Central Agency for Public Mobilisation and Statistics (CAPMAS) said inflation dropped to 2.4 percent year on year in October, plunging from 17.5 percent in October 2018, according to official Ahram Online news website.
The decrease in annual inflation was the result of a drop in food and beverage prices by 6.3 percent, the report said, adding that urban consumer price inflation dropped to 3.1 percent, down from 4.8 percent in September.
October’s monthly inflation is 1 percent higher than September, with CAPMAS reasoning the jump to increased prices of books, newspapers, and other products.
The rise came despite a decrease in the prices of vegetables, poultry, and grains.
Inflation has been on a downward trend since May 2019, despite a hike in domestic fuel prices in July 2019.
Supported by a 12-billion-dollar loan from the International Monetary Fund, Egypt started a three-year austerity-based economic reform program in November 2016, including local currency devaluation, fuel and energy subsidy cuts and introduction of value-added tax.
Despite consequent price hikes, the reform program achieved positive results that reflected on the country’s growth rate, which hit 5.6 percent during the 2018/19 fiscal year that ended in late June.