Egypt's September inflation up, while annual rate continues to ease

Egypt’s monthly inflation rose by 1.5% in September as the government started phasing out decades-old rent controls, while annual inflation declined for the fourth consecutive month, official data showed Wednesday.

The Central Agency for Public Mobilization and Statistics attributed the monthly increase to higher housing and utility costs, which jumped 3.4% month-on-month. Vegetable prices also surged 12.2% in the same period, adding further pressure on household budgets.

In August, President Abdel Fattah El-Sisi ratified amendments to the old rent law. The reform allows for a gradual hike in rents for properties still subject to fixed contracts, with monthly increases ranging from EGP 250 to 1,000 depending on the property’s classification. The move is part of a broader effort to liberalize Egypt’s housing market.

However, the law has faced criticism from tenant advocacy groups, who argue it could displace vulnerable households. Several tenant associations announced plans to challenge the legislation in court, claiming it violates constitutional protections.

Despite the monthly rise, Egypt’s annual inflation eased to 10.3% in September from 11.2% in August, continuing a downward trend for the fourth month in a row.

The government has struggled to contain inflation following two years of monetary tightening. While it postponed scheduled electricity price hikes to cushion low- and middle-income households, a recent fuel price increase may reignite inflationary pressures in the months ahead.