RFA Breakfast Paper - September 10, 2026

Egypt’s Inflation Eases More Than Expected in August

Egypt’s annual urban inflation slowed to 14.5% in August 2026 from 14.9% in July, coming in below market expectations of 15.5% and marking a modest easing in price pressures. The decline was driven primarily by food and beverage inflation, which fell sharply to 6.3% from 8.0%, while transport inflation edged down to 24.4% as the impact of earlier fuel price increases continued to fade. Inflation also moderated for furnishings, alcohol and narcotics, although these gains were partly offset by higher inflation in housing and utilities, clothing and footwear, and healthcare. On a monthly basis, CPI rose 0.1% after remaining unchanged in July, indicating that underlying price pressures remain present despite the annual slowdown. Overall, the softer-than-expected inflation print strengthens the case for continued monetary easing, although elevated housing and transport costs could keep the pace of disinflation gradual.

U.S. Equity Markets Decline Amid Rising Yields and Oil Prices

U.S. equity markets ended lower on Thursday as rising Treasury yields and higher oil prices weighed on investor sentiment. The 10-year Treasury yield climbed to 4.95%, its highest level in nearly three years, while WTI crude oil approached $103 per barrel amid continued disruptions in the Strait of Hormuz. The combination of higher energy costs and rising yields heightened concerns over renewed inflationary pressure and tighter financial conditions. Producer price inflation also pointed to continued pressure within the inflation backdrop. PPI increased to 5.4% year over year in August from 4.8% in July, in line with expectations, while core PPI rose to 4.6%. Energy prices accounted for much of the monthly increase in goods prices, while services inflation remained subdued. Although the readings were broadly anticipated, the firmer headline and core figures, alongside elevated energy costs, reinforced expectations for a more cautious Fed policy outlook and added to the pressure on risk assets.

NGX Edges Higher as Oil & Gas and Banking Lead Gains

The Nigerian equity market rebounded marginally, with both the NGX-ASI and Market Capitalization gaining 0.06% as renewed bargain hunting supported sentiment across selected medium- and large-cap stocks. The modest recovery came despite negative market breadth, indicating that gains in several key stocks were sufficient to lift the broader index. The NGX-ASI added 155.03 basis points to close at 242,378.13, while Market Capitalization increased by ₦100.51 billion to ₦157.15 trillion. Trading activity also strengthened significantly during the session, with total volume and value traded rising by 161.79% and 21.83%, respectively. Approximately 1.40 billion units valued at ₦27.14 billion changed hands across 46,218 deals, pointing to increased market participation. Sector performance, however, remained mixed, with three of the five major sectors closing lower. Consumer Goods led the declines, followed by Insurance and Industrial Goods, while gains in Oil & Gas and Banking provided the main support for the market’s marginal recovery.