Egypt: Inflation jumps in May after March's notable devaluation in the pound
June 15, 2016
In May, consumer prices rose 3.1% over the previous month, which notably exceeded the 1.3% increase recorded in April. According to the Central Bank, the rise reflected higher prices for several sub-categories, including healthcare, hotels and restaurants as well as food and non-alcoholic beverages.
Inflation jumped from 10.3% in April to 12.3% in May, which marked the second consecutive rise and the highest reading in a year. While the government is taking efforts to reduce inflation and to stem the outflow of foreign exchange, with measures including price controls and import quotas, March’s notable devaluation of the pound added to inflationary pressures. Meanwhile, annual average inflation remained at April’s 10.0% in May. Core inflation, which excludes volatile items such as fresh fruit and vegetables, jumped to a record-high of 12.2% in May from 9.5% in April.