CAIRO: In its monthly statistical bulletin, The Central Agency for Public Mobilization and Statistics (CAPMAS) announced Tuesday that the rate of monthly inflation in Egypt edged down 0.9 percent in May.
The 0.9 percent decline in monthly inflation is considered the highest rate of decline since May 2013, it stated, pointing out that the annual inflation rate edged down to 8.3 percent, the lowest rate since last November when inflation spiked to 14.2 percent.
CAPMAS attributed the decline in monthly and annual inflation rates to the 2 percent decline in food and beverages prices due to an increase in supply.
During the last month, the Consumer Price Index (CPI) experienced a 0.7 percent decline in food and beverage prices in urban areas and a 1.1 percent drop in prices in rural areas.
Also, The Central Bank of Egypt (CBE) announced Tuesday that the basic rates of annual inflation edged down to 8.8 percent in May compared to 9.11 percent in April according to the CBE’s home page.
Further, monthly annual inflation edged down to 0.23 percent in May compared to 0.25 percent in April, it said.
Former Dean of the Faculty of Economy and Political Sciences at Cairo University Alia Al-Mahdy told The Cairo Post that the positive index of inflation of the last year is considered a sign for the end of recession states that in the past few months have hit the Egyptian Market.
“Inflation rates do not have a direct relation with the economy, but it could affect the growth rate in the long-term,” Al-Mahdy said.