Egypt’s core inflation drops to 14.35% in January 2018: CBE
Thu, Feb. 8, 2018
CAIRO – 8 February 2018: The Central Bank of Egypt (CBE) said that the Egyptian annual core inflation rate declined to 14.35 percent in January 2018 from 19.86 percent in December 2017, according to a report on Thursday.
On monthly basis, core inflation increased by 0.17 percent in January 2018 compared to a decline by 0.37 percent in December 2017.
Core inflation fell to 19.86 percent in December, from 25.54 percent a month earlier, declining by 0.37 percent month-on-month, the CBE showed.
Core inflation discounts or strips out certain categories that are considered more volatile.
The Central Agency for Public Mobilization and Statistics (CAPMAS) stated on Thursday that Egypt’s annual inflation declined to 17 percent in January 2018.
Capital Economics maintained its long-held view that Egypt’s inflation and interest rates will fall further than most expected.
Capital Economics report added that the continued sharp decline in Egypt’s inflation in January paves the way for the CBE to embark on an easing cycle at its monetary policy meeting next week.
The report clarified that the Egyptian pound floatation pushed up the cost of imported goods but these effects are now falling annually.