Egypt’s Annual Urban Consumer Price Inflation Falls to 15.7% in November

Egypt President, Abdel Fattah el-Sisi

Egypt’s Annual Urban Consumer Price Inflation Falls to 15.7% in November

Central Agency for Public Mobilization and Statistics (CAPMAS) on Monday said Egypt’s annual urban consumer price inflation dipped to 15.7 per cent in November from 17.7 per cent in October, exceeding analysts’ expectations.

The rate had been increasing steadily since August, reflecting the impact of the government’s fuel, electricity and transportation subsidy cuts that helped it meet the terms of its $12 billion IMF loan.

The Head of research at Pharos Securities Brokerage, Radwa El-Swaify said “We did not expect the rate to decline like this.”

Inflation had spiked in October due to supply problems in the domestic fruit and vegetable market.

Prices fell by an average of 0.8 per cent across urban Egypt in November from October, the main driver behind the decrease in the headline rate.

Head of research at Naeem Brokerage, Allen Sandeep said “The results are much better than expected, and it’s a big relief for policymakers as the headline inflation rate is back within the central bank’s targeted range.”

Egypt’s Central Bank, which is targeting an inflation rate of 10-16 per cent, left key interest rates on hold in its November meeting, saying underlying inflationary pressures in the economy were contained.

The bank’s monetary policy committee is due to meet again on December 27.

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