Egypt: Inflation accelerates in May
June 10, 2019
Consumer prices rose 1.1% in May compared to the previous month, up from the 0.5% in April. The latest consumer price increase was driven by more expensive for food and beverages, and hotels, cafes and restaurants.
Inflation accelerated to 14.1% in May, up from 13.0% in April and further outside of the Central Bank’s Q4 CY 2020 target range of 9.0% plus or minus three percentage points. Meanwhile, core inflation decelerated to 7.8% in May from 8.1%, and annual average inflation ticked up to 14.3% from 14.1%.
Looking ahead, inflation could face further upward pressure from June as the government cuts fuel subsidies, although the appreciation of the Egyptian pound since January should somewhat counteract this effect.
Author: Edward Gardner, Economist