Egypt: In May inflation mercifully peaks at last, albeit at an excruciatingly high rate
June 8, 2017
In May, urban consumer prices rose 1.67% from the previous month, down marginally from April’s 1.69%. Despite representing a significant rise in prices, May’s figure was the lowest in eight months, suggesting the impact of the huge depreciation of the Egyptian pound observed late last year is beginning to wane. Core consumer prices—which exclude some of the hardest-hit commodities such as several food products and regulated utilities—rose 1.99% in May, up significantly from April’s 1.10%
Urban inflation finally peaked in May after six successive increases, coming in at 29.7%, down from April’s 31.5%. Meanwhile, annual average inflation rose from 20.8% in April to 22.2% in May.
Author: Oliver Reynolds, Economist