Inflation in Egypt
Egypt - Inflation
Inflation slumps in June but is set to climb again in July on fuel subsidy cuts
Consumer prices fell 0.8% in June compared to the previous month, contrasting the 1.1% rise in May. The decrease in June was overwhelmingly due to lower prices for food and beverages.
Inflation decelerated rapidly in June, hitting 9.4%, down from 14.1% in May and coming close to the 9.0% midpoint of the Central Bank’s Q4 CY 2020 target range of 6.0% to 12.0%. June’s reading was significantly lower than market analysts had expected and represented the lowest reading since March 2016. For its part, core inflation slowed to 6.4% in June, down from 7.8% in May. Annual average inflation moderated to 13.9% in June from 14.3% in May.
Looking ahead, inflation is likely to climb again in July as the effects of fuel subsidy cuts, which were implemented at the start of the month by the government, become felt. The subsidy cuts were a requirement of the three-year IMF support program that Egypt signed up to in November 2016 and will soon complete.
FocusEconomics Consensus Forecast panelists expect inflation to average 12.4% in CY 2019, which is up 0.1 percentage points from last month’s forecast, and 10.1% in CY 2020.
Egypt - Inflation Data
|Inflation Rate (CPI, annual variation in %)||9.5||10.1||10.4||13.8||29.5|
5 years of economic forecasts for more than 30 economic indicators.
Egypt Inflation Chart
Source: Central Agency for Public Mobilization and Statistics.
|Bond Yield||15.73||0.0 %||Jul 31|
|Exchange Rate||16.55||0.0 %||Jul 31|
|Stock Market||1,268||0.53 %||Jul 31|
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July 11, 2019
The economy expanded 5.7% year-on-year in the fourth quarter of FY 2019, which ran from April to June.
July 11, 2019
The Central Bank of Egypt (CBE) left all interest rates unchanged at its monetary policy meeting on 11 July, as had been expected by most market analysts.
July 10, 2019
Consumer prices fell 0.8% in June compared to the previous month, contrasting the 1.1% rise in May.
July 3, 2019
The Emirates NBD Egypt Purchasing Managers’ Index (PMI), which measures business activity in the non-oil private sector, rose to 49.2 in June from 48.2 in May.
June 10, 2019
The Emirates NBD Egypt Purchasing Managers’ Index (PMI), which measures business activity in the non-oil private sector, fell to 48.2 in May from 50.8 in April.