Egypt After 2025: Navigating a Critical Inflection Point    Spot Gold, futures slips on Thursday, July 17th    Egypt's EHA, Huawei discuss enhanced digital health    Egypt expresses condolences to Iraq over fire tragedy    Egypt, Oman discuss environmental cooperation    Egypt's Environment Minister attends AMCEN conference in Nairobi    At London 'Egypt Day', Finance Minister outlines pro-investment policies    Sukari Gold Mine showcases successful public–private partnership: Minister of Petroleum    Egypt's FRA chief vows to reform business environment to boost investor confidence    Egyptian, Belarusian officials discuss drug registration, market access    Syria says it will defend its territory after Israeli strikes in Suwayda    Pakistan names Qatari royal as brand ambassador after 'Killer Mountain' climb    Health Ministry denies claims of meningitis-related deaths among siblings    Sri Lanka's expat remittances up in June '25    EU–US trade talks enter 'decisive phase', German politician says    Egypt's Health Min. discusses drug localisation with Sandoz    Needle-spiking attacks in France prompt government warning, public fear    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Egypt's inflation drops to 9.9 percent in June
Published in Daily News Egypt on 09 - 07 - 2009

CAIRO: Urban consumer inflation dropped to 9.9 percent in June, down from 10.2 percent in May, an 18-month low, according to figures released by the Central Authority for Public Mobilization and Statistics (CAPMAS) Thursday.
The drop came despite expectations that inflation pressure would continue to rise into the second half of the year due to the summer holidays and the upcoming month of Ramadan.
Though inflation levels have been steadily dropping in recent months, the consumer price index (CPI) has seen a 10 percent rise year-on-year for June from 121.5 in June 2008, to 133.6 percent.
This increase was in line with the expectations of analysts at EFG-Hermes, CI Capital and Beltone Financial, who had predicted an expansion of CPI by 9.5 to 9.9 percent, Reuters reported.
Magdy Sobhy, an economics expert at Al-Ahram Center for Strategic Studies, confirmed that analysts had agreed on the probability of dropping inflation levels through the end of the year.
He added that the prices of many goods measured in the CPI have been deeply impacted by the financial crisis.
"A lot of the merchandise by which the inflation percentage is measured are imports such as wheat, meat and dairy. These products' prices have significantly declined in the past year, he said.
Others, however, were skeptical about the positive figures.
"I don't trust that these statistics accurately reflect the situation in Cairo, said Gouda Abdel Khaled, an economics professor at Cairo University.
Another Cairo University economics professor, Ola El-Khawaga, pointed out that the news statistics were based on only one basket of prices.
"These figures cover certain items only and don't indicate a generalized reduction in prices. Some prices might have come down, but not all baskets are the same, and the picture could be different if the prices of other items were taken into consideration, she said.
Cairo based investment bank Beltone Financial had previously predicted that inflation levels would drop steadily throughout the year due to a strong base effect and would therefore not be indicative of inflation pressures faced by consumers.
In a statement on the released statistics, Beltone pointed to monthly changes in CPI levels as a better indication of the real impact of price changes on consumers.
The CPI rose 0.4 percent from May, due to an increase in the prices of food products, recreation services and miscellaneous items by 0.5 percent, 4.6 percent and 0.1 percent respectively, though the prices of the items declined year-on-year for May.
Monthly changes in CPI levels peaked at 1.7 percent in April before declining again to current rates.
The Beltone statement specifically pointed to a possible rise in transportation costs between Cairo and the Nile Delta as a result of new transport regulations, which could lead to an increase in the prices of some goods in the coming months.
Food and oil prices along with shifting interest rates have also contributed to current inflation levels.
The Central Bank of Egypt cut interest rates by 50 basis points at its last meeting in June, and Beltone expects that the bank will maintain these rates through this month.
"We continue to expect that the CBE could be inclined to keep its interest rates unchanged at its next meeting on July 30, given the persistence of food inflation, and the expected emergence of inflationary pressures from other non-food items later in the year, the report stated.
Beltone predicts that inflation will average 9.5 percent for 2009 before dropping to an average of 6 percent in 2010 as higher commodity prices are subdued by the base effect.


Clic here to read the story from its source.