Egypt: Egyptian inflation eases for second month in October
November 10, 2016
In October, consumer prices rose 1.7% from the previous month, which was above September’s 1.3% increase. According to the Central Bank, the stronger rise was largely the result of higher prices for regulated items, particularly electricity, which more than offset a notable decrease in prices of fruits and vegetables.
Inflation came in at 13.6% in October. The reading was below September’s 14.1% log and marked the second consecutive month of deceleration after inflation figures had reached an over-seven year high in August. Although October’s result provided further respite from soaring prices, it was mostly driven by a favorable base effect. In addition, the recent floatation of the pound and the removal of subsidies on fuel products will likely heighten inflationary pressures towards the end of this year and at the outset of next year.
Meanwhile, annual average inflation rose to 12.1% in October from 11.7% in September, the highest level since October 2009. Core inflation, which excludes volatile items such as fresh fruit and vegetables, came in at a record-high 15.7% in October, markedly above September’s 13.9% reading.
Author: David Ampudia, Economist