On Thursday, the Central Apparatus for Public Mobilisation and Statistics said that the annual inflation rate according to the consumers prices in Egyptian cities increased to 5.7 per cent in August from 5.4 per cent in July.

CAPMAS added in a press statement that the increasing annual inflation is promoted by the large increases in food prices, but that the monthly inflation acceleration declined to 0.1 per cent in August compared to 0.9 per cent in July.

Reuters reported that the inflation rate is still within the target range of five per cent to nine per cent determined by the Central Bank of Egypt, which is to meet on 16 September, to decide the new interest rates.

Analysts said that CBE is expected to decrease the high interest rates decided since November 2020, which are among the highest in the world, as CBE attempted to attract creditors to invest in its treasury bills.

CAPMAS announced last month that the annual inflation rate in Egypt recorded 6.1 per cent, compared to 5.3 per cent in June and 4.5 per cent in July 2020. This increase is caused by the increase of electricity, gas and fuel prices at 8.9 per cent, food and drinks prices at 5.4 per cent, transport services at 7.8 per cent, tourism and travels at 6.9 per cent, milk products at 2.2 per cent, smoking products at 1.7 per cent, and education services at 29.7 per cent.