Egypt Inflation May 2017

Egypt

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.

The gradual fading-out of the effects of the recent VAT increase, subsidy reforms and currency depreciation, coupled with prudent monetary policy, should cause inflation to fall going forward. FocusEconomics Consensus Forecast participants expect inflation to average 23.0% in calendar year 2017 and 14.1% in calendar year 2018.


Author:, Economist

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Egypt Inflation Chart


Egypt Inflation May 2017

Note: Year-on-year and month-on-month variation of urban consumer price index in %.
Source: Central Agency for Public Mobilization and Statistics (CAPMAS).


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