Egypt: Inflation surges to over-seven-year high in June
July 15, 2016
In June, consumer prices rose 0.8% over the previous month, which followed the 3.1% increase recorded in May. According to the Central Bank, the rise mainly reflected higher prices for food and retail items.
Inflation jumped from 12.3% in May to 14.0% in June, which marked the third consecutive rise and the highest reading since January 2009. March’s notable devaluation of the pound heightened inflationary pressures and has partly undermined the government’s efforts to reduce inflation and stem the outflow of foreign exchange by imposing price controls and import quotas. Meanwhile, annual average inflation rose from 10.0% in May to 10.2% in June. Core inflation, which excludes volatile items such as fresh fruit and vegetables, increased to a record-high of 12.4% in June from 12.2% in May.