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Egypt annual headline inflation slows to 9.4% in June

Egyptian notes [Kokillennium/Flickr]
Egyptian notes [Kokillennium/Flickr]

Egypt’s annual urban consumer price inflation eased to 9.4% in June from 14.1% in May, official statistics agency CAPMAS said on Wednesday, a sharper decline than many analysts had expected after last week’s fuel price hikes, reports Reuters.

“That’s a bigger than expected drop,” said Allen Sandeep, head of research at Naeem Brokerage. “Good news for the markets, as this could raise hopes for a rate cut tomorrow.”

READ: Egypt’s trade deficit up 10% in March

The Central Bank of Egypt’s monetary policy committee will meet on Thursday to decide whether to move its key interest rates. It held them steady at its last two meeting, in May and March, after a surprise cut in February.

Of 15 contributors to a Reuters poll, Naeem was the only one to predict a cut on Thursday.

Egypt raised fuel prices last week by between 16% and 30% as part of an IMF-backed economic reform programme that saw inflation rise to a high of 33% in 2017.

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