'Indignant' Villarreal slam penalty re-take due to VAR review    North Korea launches more short-range missiles, clouding prospects for talks    Syrian offensive is causing humanitarian crisis: Erdogan to Putin    EU waiting for ‘realistic, operational & compatible' proposals from UK    Global disputes likely to thwart unity at G7 summit in France    IMF to hold weekend meetings in Argentina for Macri, Fernandez    Hamstring injury sidelines Kompany as Anderlecht lose again    Sisi issues Oks establishing board of Egyptian space agency    Rescuers confirm three killed, 300 evacuated after Indonesian ferry fire    Dollar drops as U.S.-China trade tension intensifies    European markets close lower as U.S.-China trade tensions escalate    Asia markets close higher as Japan-South Korea tensions escalate    Preview: Zamalek's Shikabala has another chance to stake claim for regular place    Time picks Egypt's Red Sea Mountain Trail as one of World's Greatest Places 2019    'Upskirting' abuse arrest in Spain brings calls for new laws    UNWHO head presents Sisi with report on Egyptian health initiatives, praises efforts in healthcare    INJAZ Egypt launches "Starting Right" program for students    Al Kenz II: Egyptian cinema's sequel mania but not in the usual sense    Sisi, Egyptian ministers discuss implementing health insurance system    European shares dip as Fed cools further easing hopes    Egypt PM discusses criteria for exemption from health insurance system fees    Contracting new coach for Egypt's football team a priority: Amr El-Ganainy    Egypt garment exports rise 9% in 7 months    Egypt's Nile water committee reviews trilateral negotiations on Ethiopia's GERD    Liverpool thankful to have Egyptian star Salah on his frontline: Klopp    Egypt's Baron Empain Palace to be reopen after renovation    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    ACWA Power compares 3 bids to supply production units for Luxor power station    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    What do you know about gold alloying?    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Cairo's historic Tahrir square to be renovated – PM    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    Political parties gear up for parliamentary, senate, local elections    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Al-Sisi honours Egypt's scholars on Science Day    12th National Egyptian Theatre Festival fuel up public theatre art scene    28th Citadel Festival for Music and Singing embraces attendees with international troupes    Serbian Micho to be Zamalek's new coach: Egypt's Mortada Mansour    Cairo University tops 2019 Shanghai Academic Ranking    3 sentenced to death for 2016 killing of 4 Egyptian policemen    Too early to estimate Nile's flooding volume: Irrigation Ministry    Ministry of Environment has a plan for "black clouds season"    Sudan's key opposition may nominate economist Abdalla Hamdok for prime minister    LA Opera declines details on longtime general director's investigation    Sudan opposition to nominate economist Abdalla Hamdok for prime minister: Sources    Photo of Egyptologist Zahi Hawass to decorate NYC's Times Square to promote tourism to Egypt    







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





Egypt inflation jumps to a year high on food prices
Published in Daily News Egypt on 10 - 05 - 2011

CAIRO: Urban consumer inflation in Egypt accelerated to 12.1 percent in April, its highest in a year, on the back of soaring food prices which contributed to the mass protests that toppled President Hosni Mubarak earlier this year.
Inflation hit its highest level since March 2010 and was up from 11.5 percent year-on-year in March. On a monthly basis, prices increased 1.2 percent in April.
Several economists had expected an increase in the rate — the most closely watched indicator of prices — as a result of a weaker pound, higher oil prices and imported inflation.
"The headline (rate) stays high because the currency is weak and commodities are still expensive in spite of the recent correction," said Liz Martins, economist at HSBC Middle East.
Analysts say they expect the central bank to keep interest rates steady in June to support an economy reeling from the impact of the popular revolt. Raising rates to combat food-driven inflation would have a limited or no effect on overall prices.
Martins said inflation was not demand driven anymore and "a hike won't bring down the price of bread."
Food and beverage prices, which account for 44 percent of the weighting of the basket Egypt uses to measure inflation, accelerated to 21 percent in the year to April, from 20.5 percent in March.
Egypt, which relies on imports for at least half of its domestic consumption, could suffer further food price inflation after the UN Food and Agriculture Organization said concerns over Chinese and US winter crops could push global food prices higher while global production lags rising demand.
Beltone Financial forecast inflation would average 11.2 percent in the fiscal year to the end of June and further rise to an average of 13.8 percent in the following year, mainly driven by rising global food prices and currency depreciation.
Economic slowdown
Anti-government protests fuelled by soaring prices, unemployment and demands for democratic reforms brought much of Egypt's economy to a standstill for nearly three weeks until Mubarak resigned on Feb. 11.
A collapse in tourism and foreign investment following the political turmoil has hit revenues hard and economists forecast the economy of the most populous Arab country contracted 7 percent in January-March from the previous quarter.
Egypt's central bank kept its key overnight interest rates steady on April 28 in a bid to foster economic growth without reigniting high inflation.
It said the political shakeup would continue to affect consumption and investment, "adversely weighing" on the economy, while global recovery was uncertain due to higher international oil prices amid political unrest in the region.
The International Monetary Fund projects Egypt's economic growth to plunge to 1.0 percent this year after a 5.1 percent expansion in 2010.
Egypt's finance minister has estimated that the political turmoil would reduce economic growth to 2.5-3 percent in the financial year to end-June from the government's previous forecast of 6 percent. –Additional reporting by Mohamed Samir


Clic here to read the story from its source.