CAIRO: Egypt’s core annual inflation rate dipped further to 5.55 percent in September, down from 5.61 percent in August, the Central Bank of Egypt (CBE) announced Thursday.
Earlier on Thursday, the Central Agency for Public Mobilization and Statistics (CAPMAS) reported that Egypt’s annual urban consumer inflation jumped to 9.2 percent in September from 7.9 percent in August, the first hike since May.
CAPMAS attributed the rise mainly to a 1.4 percent hike in meat, cheese and egg prices. The prices of fruits edged up 1.2 percent as well.
Inflation soared in Egypt last summer after the government cut energy subsidies by 40 billion EGP ($5.6 billion) in July, 2014, which raised fuel prices by up to 78 percent.
The CBE decided in its last meeting on Sept. 17 to keep the overnight deposit and lending rates unchanged at 8.75 percent and 9.75 percent respectively.
Meanwhile, banking experts urged the central bank to raise interest rates of local currency deposits to encourage cash saving which in turn reduces liquidity and restrains inflation pressures.