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HomeWorldEgypt's inflation inches up to 8.2pc

Egypt’s inflation inches up to 8.2pc

Egyptian urban consumer inflation edged up to 8.2 per cent in the year to May, the state statistics agency Capmas said on Monday, pushed up by food prices and a weaker currency.

Annual inflation in April was 8.1 percent.

The cost of imports has risen in recent months because of a weakening Egyptian pound, which has lost more than 11 percent of its value against the dollar since December on the official market and even more on the black market.

On a monthly basis, consumer prices fell by 0.2 percent in May, as food and beverage prices dipped 0.6 percent on the month, Capmas said but did not explain the price falls.

Analysts expect inflation to increase later this year as the black market rate suggests Egypt’s currency is still overvalued and will come under renewed pressure and if the government implements austerity measures that are likely to include further cuts in energy subsidies.

The Egyptian pound plunged after the 2011 popular uprising, which chased away tourists and investors, two of the country’s main sources of foreign exchange. Analysts say the currency remains overvalued against the dollar.

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