Egypt: Inflation hits highest level since April in November
December 10, 2020
Consumer prices increased 0.82% in November over the previous month, which was below October's 1.80% increase. Looking at the details of the release, prices for food and non-alcoholic beverages, and clothes and footwear rose in November.
Inflation came in at 5.7% in November, above October’s 4.5%. November's figure represented the highest inflation rate since April. Meanwhile, the trend pointed up slightly, with annual average inflation coming in at 5.2% in November (October: 5.0%). Core inflation rose to 4.0% from October’s 3.9%.
Regarding November’s reading, Farouk Soussa, economist at Goldman Sachs, commented:
“We believe significant uncertainty will remain around the trajectory of food prices. We maintain our forecasts for sequential monthly CPI, and the uptick in November now mechanically raises our medium-term yoy projections. We now see inflation rising to +6.1% yoy by the end of the year, from a forecast of +5.4% yoy previously.”
Author: Stephen Vogado, Economist