Egypt’s rate of urban inflation increased to 10.8 per cent in September, up from 9 per cent in August.

It is the first increase in annualised inflation since November 2008. Food prices have risen 17.4 per cent over the last 12 months and this has fuelled inflation.

Food prices rose 3.7 per cent between August and September.

Rural inflation is now 9.6 per cent, bringing overall inflation to 10.2 per cent.

In late September, the Central Bank of Egypt cut interest rates by 0.25 per cent. The overnight deposit rate is now 8.25 per cent and the overnight lending rate is 9.75 per cent.

According to a statement issued on 17 September, the bank’s Monetary Policy Committee said it would not cut rates again during the current economic cycle as inflation remains within the central bank’s set targets.