The rate of inflation (consumer prices) in Egyptian cities decreased to 4.1 percent year-on-year in April from 4.5 percent in March. But compared to the previous month, price inflation increased in April to 0.9 percent, compared with 0.6 percent in March. The Central Bank of Egypt target for inflation until the end of 2022 is about 7 percent.
The Egyptian Central Agency for Public Mobilization and Statistics attributed the decline in annual inflation to a decrease in vegetable prices by 9.6 percent, especially tomatoes, which fell 29 percent, in addition to a decline in fish prices by 9 percent.
On a monthly basis, prices increased due to the increase in the prices of vegetables by 9.8 percent, meat and poultry by 4.9 percent, and fruits by 2.5 percent.
"Capital Economics" expects the inflation rate to rise over the coming months, which will push policymakers to keep interest rates unchanged until later this year, however, in the event that inflation continues to record rates below expectations, the Central Bank of Egypt may cut interest rates sooner than is currently expected. It also expected a decline in the value of the Egyptian pound, which would raise the prices of imported goods.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
