Egypt Inflation Eases

Egypt’s monthly inflation rate held steady in May, offering new indications that the price surges triggered by the lifting of currency controls were plateauing as the government pushed ahead with its economic reform efforts, Bloomberg reported. The month-on-month urban inflation rate rose 1.7%, unchanged from April. The annual rate eased to 29.7% from 31.5% in April, its first reversal since October, the month before the floating of the pound, according to data posted on the website of the state-run statistical agency, CAPMAS. The central bank’s Nov. 3 decision to lift currency exchange restrictions sent prices soaring, further pressuring a nation with widespread poverty. Core inflation, which strips out regulated and volatile items, accelerated on the month to 1.99% in May from 1.1% in April, according to data posted by the central bank. On an annual basis, it slowed to 30.57% from 32.06%. “The drop in the annual figure in May is probably temporary, and is mainly driven by the stability of the exchange rate used to calculate customs,” said Reham El Desoki, senior economist at Dubai-based Arqaam Capital.