The Central Bank reveals the reasons for the high inflation during the month of September 2022
The annual general urban inflation rate rose to 15% in September 2022, compared to 14.6% in August, driven by the rise in the prices of non-food commodities to continue to be the main reason affecting inflation rates since May 2022. General inflation recorded a monthly rate of 1.6 percent in September 2022, compared to 1.1 percent in September 2021. The monthly rate of urban general inflation in September 2022 was driven by the rise in the prices of basic commodities as a result of the increase in the prices of basic food commodities, consumer goods and services.This is consistent with the beginning of the seasonal impact of the new school year, which will extend its impact to the next month, among other factors, as the rise in the prices of administratively determined goods and services mainly reflected the rise in the prices of both cigarettes, which was announced by the Eastern Tobacco Company on September 4, 2022, and health care items. In addition to the increase in the price of subsidized rice.An analytical report of the Central Bank attributed the increase in the annual general inflation rate for urban areas in September 2022 to the increase in the annual contribution of non-food commodities. Its highest rate since May 2019, while the annual rate of food commodity inflation decreased to 21.7% in September 2022 from 23.1% in August 2022.The report revealed that the annual rate of core inflation continued its upward trend, which began a year ago, to record a rate of 18% in September 2022, compared to a rate of 16.7% in August 2022, which adjusts to its highest rate since December 2017.The annual general inflation rate for the whole of the Republic stabilized at 15.3% in September 2022, while the annual general inflation rate in the countryside decreased to 15.6% in September 2022 compared to 16% in August 2022.The prices of administratively determined goods and services increased at a rate of 0.9% to contribute by 0.21 percentage points to the monthly rate of general inflation, and this came mainly as a result of the increase in cigarette prices as announced by the Eastern Tobacco Company on September 4, 2022, in addition to the increase in the prices of public health care items and subsidized rice .The report revealed that the prices of fresh vegetables increased at a rate of 7.5%, as well as the prices of fresh fruits at a rate of 0.2%, and together they contributed by 0.22 percentage points to the monthly general inflation rate.Dairy and dairy products prices rose at a rate of 3.4% to contribute by 0.12 percentage points to the monthly rate of general inflation, as well as the increase in poultry prices by 3.1% to contribute by 0.12 percentage points to the monthly general inflation rate.The report added that the prices of fish and seafood rose at a rate of 1.3 percent to contribute by 0.03 percentage points to the monthly general rate of inflation, and the prices of free rice decreased by 6 percent to contribute by a negative 0.08 percentage points to the monthly general inflation rate.The report indicated that the prices of other basic foodstuffs, including fats, oils, bread, legumes and tea among other products, together contribute by 0.25 percentage points to the monthly rate of general inflation.Consumer goods prices increased by 2.6% to contribute by 0.35 percentage points to the monthly average general inflation. This was mainly driven by a broad-based increase in prices, the most important of which was the increase in the prices of household hygiene products, office supplies, personal care products, clothing and pharmaceutical products.The report indicated that the prices of services increased by 0.7%, to contribute by 0.25 percentage points to the monthly rate of general inflation, and this came mainly as a result of the increase in the prices of restaurants and cafes services, outpatient services, private hospitals and rental values.
