A traditional vegetables market in Cairo – Archive/Mahmoud Fakhry
CAIRO – 10 December 2017: Egypt’s core inflation fell to 25.54 percent year-on-year (YoY) in November, the Central Bank of Egypt (CBE) announced Sunday.
CBE’ indicators showed that the annual core inflation dropped to 25.54 percent in November, from 30.53 percent in October, while the monthly inflation increased to 1.31 percent in November against 0.70 percent in October.
Egypt’s inflation rate is expected to drop to 20 percent in January and to 13-14 percent by August, Finance Minister Amr el-Garhy said Sunday.
Inflation has soared since Egypt floated its currency in November last year, which slashed the Egyptian pound’s value by half. Inflation peaked to a record high in July, reaching 33 percent, but has gradually eased since.
The flotation, along with energy subsidy cuts, has helped Egypt secure a $12 billion loan from the International Monetary Fund (IMF).
The IMF expects inflation to average 22.1 percent in the current fiscal year ending June 30, 2018. The government said that it was not intending to further cut subsidies during this fiscal year.