Egypt's sugar plant, the biggest in the world, to produce 900,000 tons    Egypt's unemployment rate drops to 7.2%    Egypt's exports of food industries increase 5% in Q1    Egypt-first to have new climate targets ahead of UN summit    Egypt uncovers official logo for COP27    Ukrainian people say goodbye to Leonid Kravchuk – first elected president    Noura Al-Mutair – first Gulf female boxer in World Championships    Egypt unveils 50 pound coin minted to mark Avenue of Sphinxes grand reopening    Canada's Robert Oliphant starts Egypt, Morocco visit today    Liverpool fans: "You'll Never Walk Alone" to Cristiano Ronaldo    Hot, rainy weather hits Egypt this week    COVID-19 in Egypt: infections fall to 124 cases last week    Realme announces Global Photography Contest 2022    Egypt to play key role in integrating water, climate issues globally – World Bank official    AstraZeneca to boost Egypt investment 50% in three years    Egypt's telecoms regulator announces working hours for holy month of Ramadan    Maha karara joins AAIB as Head of Corporate Communications, Sustainability    Egypt works on charting cooperation strategies with international institutions for 5 years: Al-Mashat    Over 2.4 million newborns examined for hearing impairment: Health Ministry    Netflix releases trailer of Arab adaption of 'Perfect Strangers' film    Balqees to headline concert celebrating launch of streaming giant LIVENow in MENA    Sawsan Badr to be honoured at Aswan Women Film Festival    MP Abdel Hady Al-Qasby calls government to facilitate and support NGOs    Al-Sisi follows up on 'Great Transfiguration Project' in St. Catherine    Cairo, London stress need to strengthen cooperation to face climate change    Foreigners account for 22.6% of Egypt's T-bills issuances in 1H 2021: CBE    Egypt's ambassador to Italy passes away    Egypt confirms readiness to help African countries face terrorism and extremism    An estimated 235 million people needed humanitarian assistance and protection in 2021, an increase of 40% compared to 2020: IOM Egypt    Egypt, DRC discuss water cooperation during WYF    Egypt, DR Congo discuss boosting bilateral cooperation during WYF    Cameroonian police probe assault on three Algerian journalists covering AFCON    Pharaohs start AFCON 2021 campaign with fierce clash against Nigeria    Foreign Ministry opens capacity building course for French-speaking African diplomats    Egypt's trade with Nile basin countries climbs 26% y-o-y in 9 months    Ethiopia halts work at its embassy in Egypt for 'economic reasons'    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 urban inflation eases to 11.8 pct y/y in May
Published in Daily News Egypt on 09 - 06 - 2011

CAIRO: Urban consumer inflation in Egypt unexpectedly eased to 11.87 percent in the 12 months to May as food prices fell from April, the state statistics agency said on its website on Thursday.
The average forecast for the country's most closely watched inflation indicator by three analysts polled by Reuters was 12.5 percent.
Inflation hit its highest rate in a year in April, reaching 12.1 percent on the back of soaring food prices which had also contributed to the mass protests that toppled president Hosni Mubarak in February.
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 February 11.
Food and beverage prices, which have a 44 percent weighting in the basket Egypt uses to measure inflation, fell 0.5 percent in May from a month earlier, driving the slowdown in the overall figure, analysts said. That compares to a 2.6 percent jump in April from March.
"Generally, fruit prices are volatile," Mohamed Abu Basha of EFG-Hermes said. "Vegetable and dairy prices fell month-on-month and therefore both are the drivers of the surprise."
Core inflation, which strips out subsidized goods and volatile items including fruit and vegetables, accelerated to 8.81 percent in the year to May from 8.76 percent in April, the central bank said on Thursday.
Interest rate outlook
Egypt's central bank is expected to keep interest rates steady at its Thursday meeting, given a weak macroeconomic backdrop and stable non-food inflation.
But the inflation figures showed increases in the cost of housing, water, electricity, gas and fuel as well as furniture and equipment, pointing to a trend that analysts said will be closely watched.
"It remains to be seen whether such non-food inflation recurs in the next few months," Abu Basha said, adding that it was unlikely that interest rates would be changed this month.
"The central bank might be keeping an eye on non-food inflation over the next few months given today's reading, to see whether it's a one-off or not."
A collapse in tourism and foreign investment following the political turmoil has hit government revenues, and economists estimate the economy of the most populous Arab country contracted 7 percent in January-March from the previous quarter.
The Finance Ministry said in a statement posted on its website on Sunday that the economy was likely to grow only 3.2 percent in the 2011/12 financial year, which begins next month. The government's previous growth forecast was 6 percent.
It said high global food prices, distribution bottlenecks and a planned increase in the minimum wage would keep inflation at a "low double digit level" in 2011/12. –Additional reporting by Mohamed Samir

Clic here to read the story from its source.