'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's inflation eases slightly in June on food prices
Published in Daily News Egypt on 10 - 07 - 2011

CAIRO: Egyptian inflation in the year to June eased slightly on the back of lower food prices from a year earlier, supporting a hold in central bank interest rates in July to support an economy reeling from the impact of the revolt that ousted President Hosni Mubarak.
Urban consumer inflation was 11.8 percent in the 12 months to June from 11.87 percent in May, Egypt's state statistics agency CAPMAS reported on its website on Sunday. But on a monthly basis, prices increased 0.4 percent in June, as prices of food and tobacco increased from May.
Analysts expect the central bank to keep interest rates steady in July to stimulate growth, saying the government is more concerned about ending a recession than fighting inflation. Raising rates to combat food-driven inflation would have a limited or no effect on overall prices.
Simon Williams, chief economist at HSBC Middle East, said he expected inflation to ease in July and predicted the central bank would leave its benchmark overnight deposit and lending rates unchanged in its meeting on July 21.
"The flat headline number masks weaker underlying inflationary trend. I expect to see price growth in single digits next month for the first time in two years."
Food and beverage prices, which account for 44 percent of the weighting of the basket Egypt uses to measure inflation, decelerated 18.98 percent in the year to June from 19.8 percent in May.
Egypt's economy fell into recession after the uprising that toppled Mubarak, as vital sources of foreign exchange including tourism and foreign investment collapsed.
Real gross domestic product contracted by 4.2 percent in the fiscal third quarter from January to March, its first year-on-year contraction since Egypt's first release of quarterly GDP data in 2001/02.
The central bank Monetary Policy Committee kept its key lending rate at 9.75 percent and the deposit rate at 8.25 percent on June 9, saying the magnitude of the decline in the economy was larger than expected at the outset of the revolt.
Economists say political uncertainty will continue to dampen investor appetite and tourism at least up until parliamentary and presidential elections due later this year.
A Reuters poll on June 21 forecast that Egypt's economy would see its slowest growth in many years over the next two years as the political upheaval continued to hit tourism, investment and private consumption.
The survey of 12 economists predicted gross domestic product (GDP) in the Arab world's most populous nation would grow 3.0 percent in the fiscal year ending June 2012, based on the median figure. That compares to a government estimate of no more than 3.0-3.5 percent.
The Reuters poll forecast inflation, one of the key triggers of the mass demonstrations that toppled Mubarak, would accelerate slightly to an average of 12 percent in the 2011/12 financial year, before falling to 10.1 percent the year after.

Clic here to read the story from its source.