Egypt Inflation Rate Up to 8.1% in April


In April of 2013, the annual headline inflation rate increased to 8.1 percent, from 7.6 percent recorded in March. Headline CPI increased by 1.47 percent (m/m) in April compared to 0.64 percent (m/m) in March. The bulk of the monthly increase was driven by higher prices of fresh vegetables which accounted for over 40 percent of the monthly headline development as well as the rise in the prices of other food items.

On a year-over-year basis, prices for restaurants, hotels and cafes recorded the highest increases (19.04 percent), followed by health costs (12.52 percent), education (11.41 percent) and food and beverages (9.02 percent). 

 
After declining between October and December 2012, prices of fresh vegetables rose for the fourth consecutive month by 8.34 percent (m/m) in April following a cumulative 11.51 percent (m/m) increase in the first quarter of 2013. In the meantime, prices of fresh fruits rose by 2.58 percent (m/m) in April compared to a 0.87 percent inch up in the previous month. Together, the prices of fruits and vegetables contributed by 0.68 percentage points to monthly headline inflation in April.
 
Poultry prices increased by 2.22 percent (m/m) in April to bring the cumulative monthly increase since the beginning of 2013 to 21.73 percent. This month's increase contributed by 0.11 percentage points to monthly headline inflation and is higher than the monthly pace of 1.61 percent recorded during 2012. In the meantime, red meat prices inched up slightly in April after remaining mostly unchanged for five consecutive months.
 
After declining by 14.06 percent (m/m) in November 2012, the price of butane gas cylinders increased by 9.27 (m/m) percent in April on the back of disruptions in transport networks and resulting limited supply, which contributed by 0.09 percentage points to monthly headline inflation.
 
Prices of fish and seafood accelerated by 2.71 percent (m/m) in April, following a 1.52 percent (m/m) inch up in the previous month. 
 
Rice prices increased by 3.15 percent in April to contribute by 0.07 percentage points to monthly headline inflation, bringing the cumulative monthly increase to 17.91 percent since the beginning of the year. 
 
Prices of several food items witnessed increases in April, including eggs, soft drinks, market tea, wheat flour, cheese, pulses and maize, contributing by 0.23 percentage points to monthly headline inflation.
 
Meanwhile, retail prices recorded a 1.30 percent (m/m) increase in April on the back of sporadic increases in the prices of several retail items including clothing, household textiles, fridges, furniture, washing machines, household cleaning products and personal care products. 
 
Core CPI increased by 0.97 percent (m/m) in April compared to 0.51 percent (m/m) in March. This month’s increase is lower than the average monthly pace of 1.56 percent recorded in the first quarter of 2013. The annual rate inched up to 7.47 percent in April from 7.03 percent in March. 
 

Central Bank of Egypt | Joana Taborda | joana.taborda@tradingeconomics.com
5/15/2013 3:49:47 PM