Urban consumer price inflation eased slightly in September, dropping to 31.6% from 31.9% in August, Reuters reports.

Core inflation declined to 33.26% in September from 34.86% in August.

“The decline in core inflation … confirms our expectation that the inflationary impact of energy and utilities price hikes is tapering off and demand-driven inflation is declining,” Reham El Dessouki, an economist at Arqam Capital, said, according to Reuters.

Last month the International Monetary Fund (IMF) warned that inflation threatened Egypt’s economic stability, but commended the Central Bank of Egypt’s steps to reduce liquidity and raise interest rates to counter inflationary pressures.