Egypt’s urban inflation accelerates to 10.5% in March. From Reuters

©Reuters. FILE PHOTO: Two Egyptian women shop at a supermarket in Cairo, Egypt December 1, 2019. Picture taken December 1, 2019. REUTERS/Shokry Hussien

(Reuters) – Egypt’s annual urban consumer price inflation accelerated to 10.5% in March, the highest in almost three years and faster than analysts had expected, data from state statistics agency CAPMAS showed on Sunday.

The inflation figure, which rose from 8.8% in February, was higher than a median forecast of 10% in a Reuters poll of 14 analysts.

The price hikes were partly driven by commodity shortages following the Russian invasion of Ukraine, pushing inflation above the central bank’s target of 5-9% and the overnight interest rate of 9.25%.

Some analysts believe that inflation will continue to rise in the coming months.

“The increase in inflation trends is widely expected and will peak by August 2022, after which it will return to normal,” said Pharos Securities Brokerage’s Radwa El Swaify.

CI Capital’s Sara Saada, meanwhile, said the government is likely to hike fuel prices this month.

“Accordingly, we expect monthly inflation to peak in April to reach annual inflation of between 12.5% ​​and 13%, reflecting higher oil product prices,” she said.

Naeem Research said the increase was largely due to higher commodity prices and the currency’s depreciation on March 21.

“As the full impact of the Egyptian pound’s depreciation (15% against the US dollar) is expected to filter through to the economy, we expect inflation to rise further in April,” the statement said.

(This story corrects the name of the investment bank in the fifth paragraph on Pharos) Egypt’s urban inflation accelerates to 10.5% in March. From Reuters

Chris Barrese

InternetCloning is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – The content will be deleted within 24 hours.

Related Articles

Back to top button