Egypt’s core inflation rate drops to 7.8% in November: CBE
Central Bank of Egypt - YOUM7 (Archive)

CAIRO: Egypt’s core inflation annual rate declined to 7.81 percent in November down from 8.47 percent in October, the Central Bank of Egypt (CBE) announced on Wednesday.

In the meantime, the core CPI computed by the Central Bank of Egypt declined by 0.15 percent (m/m) in November compared to an increase of 0.55 percent (m/m) in October.

Headline CPI published by the Central Agency for Public Mobilization and Statistics (CAPMAS) yesterday showed a 1.53 percent (m/m) decline in November compared to an increase of 1.71 percent (m/m) in October.

The annual rate dropped to 9.09 percent in November from 11.84 percent in October, according to the central bank website.

CAPMAS attributed the decline to the price decline of food and beverage by 3.6 percent during November.

In its last meeting on November.27, the CBE’s Monetary Policy Committee (MPC) decided to keep the overnight deposit rate and overnight lending rate unchanged at 9.25 percent and 10.25 percent respectively.

The rate of the CBE’s main operation and the discount rate were also kept stable at 9.75 percent, according to a statement posted on the CBE’s official website.

In a previous meeting held Oct. 16, the committee also maintained the overnight deposit rate, overnight lending rate and the rate of the CBE’s main operation that was earlier raised on July 17 by 100 basis points each.

“The real GDP picked up slightly in 2013-2014 Q4, growing by 3.7 percent compared to the 2.5, 1.44 and 1.04 percent recorded in the previous three quarters respectively. This brought the annual growth for the whole FY 2013-2014 to 2.2 percent following a similarly sluggish growth rate of 2.1 percent during FY 2012-2013,” the statement read.

The Central Bank also noted that investments in domestic mega projects such as the Suez Canal are expected to contribute to economic growth.

“CBE’s key rates are currently appropriate given the balance of risks surrounding inflation and GDP outlooks,” the statement concluded.

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