Egypt Inflation Rate Down to 9.1 percent

Egypt’s annual inflation rate declined to 9.1 percent in November of 2014 from an eleven-month high of 11.8 percent in October.

It is the lowest rate in five months. Consumer prices have been on an upward trend since July, when the government cut subsidies, raising fuel prices by around 78 percent and leading the central bank to raise the benchmark interest rate by 100 bps to 9.25 percent.

Year-on-year, prices of food and beverages slowed sharply to 7.07 percent, after an 11.52 percent rise in the previous month. Transport cost rose 22 percent, marginally up from 21.87 percent in October and prices of housing, water, electricity and gas eased to 2.49 percent from 5.6 percent in the preceding period.

On a monthly basis, prices fell for the first time in six months by 1.53 percent, following a 1.71 percent increase in October. Food and beverages recorded the highest drop (-3.52 percent). Prices of fresh vegetables decelerated to 14.63 percent and cost of fresh fruits decreased by 0.44 percent. In contrast, prices of clothing and footwear increased 2.79 percent. Meanwhile, prices of other services and paid services remained nearly unchanged.

The annual core inflation which strips out subsidized goods and volatile items such as fruit and vegetables declined to 7.81 percent in November compared to 8.47 percent in October.

Egypt Inflation Rate Down to 9.1 percent

Carolina Cunha |
12/16/2014 11:50:01 AM