September Inflation Rises to 4.9% Amid Soaring Global Oil Prices

• Inflation reached 4.9% year-on-year in September, marking a 0.6 percentage point increase.
• Rising energy costs, driven by high crude oil prices and geopolitical tensions in the Strait of Hormuz, are the primary drivers of this inflationary pressure.

Economic Impact

• Fuel and lubricant prices have risen significantly compared to last year.
• Tourism packages have seen smaller price declines than in previous years, contributing to the overall increase.
• Monthly inflation grew by 0.3% in September, adding to the cumulative cost burden on households.

Underlying Trends

• Core inflation, which excludes volatile energy and unprocessed food prices, rose to 3.1%.
• This marks the first time in over two years that core inflation has exceeded the 3% threshold.
• The rise in core inflation indicates that higher energy costs are now cascading into other goods and services as businesses pass on operational cost increases.