Egypt's urban annual consumer price inflation climbed to 13.6 per cent in the year to January, at the top end of analysts' expectations, the country's Central Agency for Public Mobilisation and Statistics (CAPMAS) figures indicated. Annual inflation in December was 13.3 per cent, the figures showed. Eight analysts had forecast urban inflation -- the most closely watched indicator of prices -- between 13 and 13.6 per cent. The average forecast was 13.25 per cent. Beltone economist Reham el-Desouqi said food prices were higher in January due in part to increased demand ahead of the January 7 Coptic Christmas. "We expect headline inflation to decline in the months to come, dipping below ten per cent in March and remaining in single digit territory for the remainder of the year, in the absence of supply shocks or one-off factors," el-Desouqi said in an e-mailed statement after the release of the figures. Last month's data, published on the agency's website, showed the consumer price index climbed to 143.6 from 126.4 in January 2009. Prices of food and beverages, which account for more than 40 per cent of the weighting of the basket Egypt uses to measure inflation, rose 24 per cent from January 2009, the index published by the CAPMAS indicated. Analysts are looking for signs that annual urban inflation may be declining, making it easier for the Central Bank of Egypt to reduce its key overnight interest rates, which the bank left unchanged at its last three meetings. The bank's next monetary policy meeting is on March 18. "With our expectation of lower inflation, going forward, we believe interest rates will remain stable at the current levels in the first half of 2010," el-Desouqi added.
