Egypt: Inflation falls to seven-month low in April
Consumer prices rose 0.89% from the previous month in April, accelerating from March’s 0.63% increase. The higher reading was driven by rising prices for transport, and food and non-alcoholic beverages.
Inflation came in at 4.1% in April, down from 4.5% in March and marking the lowest reading in seven months. Meanwhile, the trend inched slightly lower, with annual average inflation coming in at 4.6% in in April, from 4.7% in March. Lastly, core inflation dropped to 3.3% from the previous month’s 3.7%.
Regarding the outlook, Farouk Soussa, economist at Goldman Sachs, commented:
“Looking ahead, we continue to think that weak underlying inflationary pressures will persist in the near to medium term, thanks mainly to low FX volatility and a stronger Pound, the tapering of inflationary impulses from previous fiscal adjustments, and, perhaps most importantly, supply-side measures that have brought food price volatility largely under control.”