Egypt’s urban consumer inflation jumps to 9.7% in Oct: CAPMAS
Building of Central Agency for Public Mobilization and Statistics (CAPMAS) - YOUM7 (Archive)

CAIRO: Egypt’s annual urban consumer inflation jumped to 9.7 percent in October from 9.2 percent in September, the Central Agency for Public Mobilization and Statistics (CAPMAS) reported Tuesday.

Experts agreed that Egypt’s state banks’ decision this week to launch savings certificates for Egyptian pounds with an interest rate of 12.5 percent, as a step to support the currency after devaluation, raising anticipation of a central bank policy rate hike in December.

“Looking beyond 2015, we project inflation rates to gradually decline, but remain in the upper single-digit range, as infrastructure bottlenecks are addressed and fiscal consolidation reforms take root, which should also help to reduce inflation volatility,” Moody’s stated in an early November report.

It added that the risk of imported inflation due to anticipated further currency depreciation is likely contained in light of the global decline of low commodity prices. However, any spike in global commodity prices would push Egypt’s inflation rates up once more, according to Moody’s.

Inflation soared in Egypt last summer after the government cut energy subsidies by 40 billion EGP ($5.6 billion) in July, 2014, raising fuel prices by up to 78 percent.

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