CAIRO: The Egyptian rate of inflation is expected to eclipse 13 or 14 percent during the holy month of Ramadan, said Ebada Sarhan, head of the Arab Statistics Body. The increase is due to an increased demand for goods, and a decline in the offer rate. An increasing rate of inflation is normal for July, due to successive increases in basic commodities like food, but there is concern over escalating inflation in the following months, Sarhan said. The rate of inflation in July was 0.4 percent, but the annual inflation rate for 2011 jumped from 10.66 percent to 12.10, according to Egypt's Central Agency for Public Mobilization and Statistics (CAPMAS). Dairy products and rice rose 8.41 percent and 10.6 percent, respectively. Vegetable prices declined in July. Contributing factors, like the devaluation of the Egyptian pound and the fluctuation in international prices, are expected to persist, and all cash policies must focus on limiting the cost of imports, alleviating shocks in the economy and preventing monopolies.
