CAIRO – Egypt’s urban consumer price inflation fell to an annual 13.5 percent in July from 14.4 percent in June, the official statistics agency CAPMAS said on Thursday.
Prices had soared after the import-dependent country floated its currency in November 2016, reaching a record 33 percent in July 2017. Inflation rates have since gradually eased, reaching their lowest levels in almost two years in March.
But in June, annual urban consumer inflation surged to 14.4 percent, as cuts to energy subsidies imposed under an International Monetary Fund loan agreement hit the economy more than expected.
“We expected the hike to be fully apparent in June and the reduced spending levels would let the impact fade away in July,” said Alia Mamdouh, lead economist at Beltone Financial.
Egypt has raised fuel, electricity and transportation prices over the past months to help meet the terms of the $12 billion IMF loan programme it agreed to in late 2016. The programme calls for tax increases and deep cuts to energy subsidies. (Reuters)