Egypt: Inflation eases in April
May 9, 2019
Consumer prices rose 0.5% in April compared to the previous month, down from the 0.8% increase in March. The overall increase was supported by seasonally higher prices for fruits and vegetables, but weighed on by barely-changed prices for regulated items and food excluding fruits and vegetables.
Inflation moderated to 13.0% in April from 14.2% in March, but remained 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 8.1% from 8.9%, and annual average inflation was unchanged at 14.1%.
Looking ahead, inflation could face upward pressure from June as the government is set to cut fuel subsidies, although the appreciation of the Egyptian pound since January should somewhat counteract upward pressure.
Author: Edward Gardner, Economist