Egypt’s annual urban consumer inflation 3.6% in November from 3.1% in October

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Customers buy handmade sweets at a street market ahead of Mawlid al-Nabi, the birthday of Prophet Mohammad, in Sayeda Zainab neighbourhood in Cairo, Egypt November 18, 2018. REUTERS/Mohamed Abd El Ghany

CAIRO (Reuters) – Egypt’s annual urban consumer price inflation rose to 3.6% in November from 3.1% in October, the official statistics agency CAPMAS said on Tuesday.

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Egypt is emerging from a three-year IMF-backed economic reform programme after its annual inflation rate increased to 33% in 2017. The government has hiked domestic fuel prices several times, most recently in July, as part of the terms of the $12 billion agreement.

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Urban inflation decreased 0.3% month-on-month. The slight rise year-on-year was “because of unfavourable base year impacts,” said Yara Elkahky, an economist at Naeem Brokerage. “But it is good news and aligned with our estimate.”

Annual urban consumer price inflation had fallen for six consecutive months, between May and October. The central bank has made three consecutive cuts to interest rates since August, slashing them by a cumulative 350 basis points.

Radwa El-Swaify, head of research at Pharos Securities Brokerage, also said the figures were largely in line with expectations. She expects base year effects will push inflation higher in December, to 6.5-7% year-on-year.

Reporting by Yousef Sabal; Editing by Andrew Heavens and Ed Osmond

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