Egypt's annual urban consumer inflation slumped to 8.2% in May, down from 8.8% in April, the Central Agency for Public Mobilization and Statistics (CAPMAS) announced in a report on Tuesday. May's annual inflation rate is deemed the lowest since November 2013 when the annual rate recorded 14%, marking the highest rate in four years, CAPMAS added. The month on month Consumer Price Index (CPI) has decreased by 0.9% in May, which CAPMAS attributed to a decrease in food prices, especially fruits and vegetables. The report added that the prices of vegetables shrink in May of each year. The price of food and drink items were 11.8% higher year on year in May, although on a monthly basis prices fell 2%. An April report by the International Monetary Fund (IMF) noted that Egypt's inflation is structurally high, affected by deterioration in exchange rate, supply shortages and recurrent wage increases. In response to rising prices, Minister of Supply Khaled Hanafy announced in May that the ministry will cut prices of food commodities by 30% over the next three months. These goods include poultry, meat, vegetables and fruits, he said. In April, Hanafy stated that the monthly purchasing power of citizens is expected to reach EGP 500m during the same period.
