Egypt annual inflation rate falls to 26.7%

Ahmed Ismail
4 Min Read

The annual inflation rate in Egypt fell in November to 26.7%, down from 31.8% in October, according to the Central Agency for Public Mobilisation and Statistics (CAPMAS), which added that monthly inflation in November was up, scoring 1%.

According to CAPMAS data, inflation in urban areas fell to 26% from 30.8% in October.

The decline in annual inflation comes despite a rise in the prices of most goods and services, as the declining rate of price hikes has slightly curbed the annual inflation rate.

CAPMAS stated that meat and poultry prices rose, on an annual basis, by 31.8%, while the prices of fresh and frozen meat increased by 41.3% and poultry increased by 14.8%.

Vegetable prices have also gone up by 33%, including potatoes (up by 7.2%), onions (14.9%), and tomatoes (71.2%).

Full cream milk prices increased by 56.1%, cheese by 53.7%, eggs by 34.3%, and rice by 22.1%, next to bakery products that increased by 16.5%, bread by 15.7%, and pasta by 10.3%.

Moreover, CAPMAS said that cooking oil prices have increased by about 21.8%, imported butter by 72.9%, bananas by 36.4%, citrus fruits by 97.8%, dried fruits by 30.6%, and seafood by 43.6%, while tea prices increased by 49.3% and coffee by 37.2%.

Sugar prices and the prices of sugar-containing products increased in November this year, compared to November 2016 by 16.5%, while spices were up by 17.8%.

Cigarette prices rose by 30.1%, garments by 26.2%, shoes by 28.5%, electricity and fuel by 27.8%, and water and household services were up by 39.6%.

The cost of health care rose 17.4%, driven by the increased prices of medical appliances by 7.3% while the cost of communications increased by 11%.

Reham El-Desouky, economist at Arqaam Capital, said that the inflation rate is moving as predicted, falling compared to last year, as the comparison is based on the inflation rate during the floating of the pound in November 2016. She added that inflation is likely to keep decrreasing to reach 23% next month.

She pointed out that the inflation rate is expected to be cut down in December or to be reduced by 200 base points in February 2018.

However, CAPMAS stated that monthly inflation was up, due to the increase in the prices of tobacco, garments, shoes, dairy products, and eggs.

CAPMAS explained that cheese prices were up by 4.4%, milk by 8.2%, while eggs prices went down by 2.6%.

The prices of local butter increased by 0.7%, tahini by 9.8%, and desserts by 14.1%.

In addition, the prices of poultry have fallen by about 3.1%, vegetables by 3.1%, including tomatoes by 6.7%, zucchini by 15.7%, and green beans by 24.8%.

Cigarette prices rose about 12.3% last month, while garment prices increased by 12.9% and shoes by 13.8%.

Finally, CAPMAS said that the prices of furniture and carpets increased by 4.9%, upholstery by 15.8%, personal care products by 20%, and gold by 1%.

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