Egypt's PM heads to Japan for TICAD 9 Africa development summit    National Council for Childhood reviews plan to combat child labour    Egypt's Supreme Organ Transplant Committee strengthens oversight, standards    Indian tourist arrivals to Egypt jump 18.8% in H1-2025: ministry data    African agribusiness market expected to reach $1tr by 2030    Price cuts underway across Egypt, says trade federation report    Zelenskyy seeks US security guarantees as Trump says he can 'end war now'    Israelis protest for hostage deal amid growing pressure on Netanyahu    Serbia's Vucic vows 'tough measures' against protesters after unrest    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt delivers over 30 million health services through public hospitals in H1 2025    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    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    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    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    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 rises in June
Published in The Egyptian Gazette on 10 - 07 - 2010

CAIRO--Egypt's annual urban inflation rate edged up to 10.7 per cent in June, a moderate rise that analysts do not expect will prompt the bank to raise interest rates this month.
Seven analysts cited forecasts for urban inflation - the most closely watched indicator of prices - that ranged from 10.1 to 11.5 per cent. The average of the forecasts was 10.66 per cent.
They mainly attributed the rise to an increase in prices of food and beverages, which account for more than 40 per cent of the weighting of the basket Egypt uses to measure inflation.
Economists expect inflation to continue rising in July and August on the back of higher consumer spending during the summer holidays and ahead of the Muslim holy month of Ramadan.
"We generally expect annual headline inflation will remain in the 11 to 13 percent range until the end of 2010, averaging 12 to 13 percent in 2010," said Beltone Economist Reham ElDesoki.
The urban consumer price index EGCPI=ECI for June was 147.9 versus 133.6 a year ago, the state statistics agency said on Saturday.
Urban inflation posted its first rise since February. Inflation was 10.5 per cent in May. It had been on a downtrend since peaking at 23.6 per cent in August 2008 but has fluctuated.
Inflation had been falling this year since hitting 13.6 percent in January.
Hany Genena, senior economist at Pharos, also said he expected the phase of disinflation to end after the government raised the sales tax on steel, cement and cigarettes as well as energy prices for industries to help tackle its budget deficit.
Several economists polled by Reuters believed the central bank was unlikely to change interest rates in 2010.
"We do not expect a change in CBE (central bank) interest rates, provided gasoline and diesel prices do not change until the end of the year," ElDesoki said.
The bank kept benchmark overnight interest rates on hold at its last meeting on June 17, the sixth pause since the bank began a series of rate cuts more than a year ago.
It said at the time that inflation remained within its comfort zone and interest rates were supportive of economic recovery.
The central bank kept key rates at a nine-month floor and suggested that uncertain developments in Europe could crimp foreign investment. The bank next meets on July 29.
A survey of 11 economists in June predicted GDP in the North African country would grow 5.2 per cent in the fiscal year ending in June 2011, and nine economists forecast it would grow 5.3 per cent the year after.


Clic here to read the story from its source.