CAIRO - The urban consumer inflation was 11.87 percent in the 12 months to May, beating analysts expectations and slowing from 12.1 percent in April, Egypt's state statistics agency said on its website on Thursday. The urban consumer price index for May was 114 versus 101.9 a year ago, the state statistics agency said. Three analysts polled by Reuters cited forecasts for urban inflation – the most closely watched indicator of prices – that ranged from 12.4 per cent to 12.6 per cent. The average of the forecasts was 12.5 per cent. Inflation hit its highest rate in a year in April, on the back of soaring food prices which 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 Feb 11. A collapse in tourism and foreign investment following the political turmoil has hit revenues hard in the most populous Arab country. The Finance Ministry said in a statement posted on its website on Sunday that the economy contracted in first the six months of 2011 and that it was likely to grow only 3.2 percent in the 2011/12 financial year, which begins next month. It said high global food prices, distribution bottlenecks in Egypt and a planned increase in the minimum wage would keep inflation at a "low double digit level" in 2011/12.
