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Economy

Egypt's inflation stays on target after monthly plunge in prices

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The monetary authority also lowered its inflation goal for the fourth quarter of 2020, setting it at nine per cent, plus or minus three percentage points.

Thursday 10, January 2019

(Bloomberg) --Egypt’s inflation stayed within the central bank’s target range for a second month after the biggest monthly decline in at least over a decade.

Consumer prices in urban parts of Egypt slipped 3.4 per cent in December from November, the second straight drop on a monthly basis, according to data released Thursday by the state statistics agency, CAPMAS. The annual rate slowed to 12 per cent in December, compared with 15.7 per cent the previous month and below the ceiling of the central bank’s goal of 13 per cent, plus or minus three percentage points.

The cost of food and beverages, which comprise the largest single component of the consumer-price basket, declined 6.7 per cent in December from the previous month. Surging vegetable prices in the third quarter of 2018 had hampered efforts to slow inflation.

The central bank’s Monetary Policy Committee, which left borrowing costs unchanged in December, said after last month’s meeting that “exogenous factors that are outside the scope of monetary policy may lead to transitory deviations from pre-announced target rates” for inflation.

TAGS : Inflation, CBE, Egypt

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