Egypt: Inflation slows in January
February 10, 2016
In January, consumer prices rose 0.1% over the previous month, which contrasted the 0.1% decrease recorded in December. According to the Central Agency for Public Mobilization and Statistics, the result was mainly driven by higher prices for furniture and equipment as well as for recreation and culture.
Inflation slowed from 11.1% in December to 10.1% in January. The slowdown in inflation reflected the impact of price controls and quotas on imports implemented by the government since November to reign in food prices and stem the outflow of foreign exchange as well as the effect of higher interest rates adopted by the Central Bank at its last meeting in January. Meanwhile, annual average inflation was stable at December’s 10.4%. Core inflation, which excludes volatile items such as fresh fruit and vegetables, came in at 7.7% in January, which was up from the 7.2% tallied in December.
Author: Armando Ciccarelli, Head of Data Solutions