Egypt: Inflation steady in December
January 11, 2016
In December, consumer prices fell 0.1% over the previous month, which followed the 0.3% decrease recorded in November. According to the Central Agency for Public Mobilization and Statistics, the decrease was mainly driven by lower prices for food and non-alcoholic beverages. The government has been working to combat rising prices, particularly regarding food. Since November, it has listed goods that would be subject to price controls, and has imposed quotas on imported wheat, in an effort to reign in food prices and stem the outflow of foreign exchange.
Inflation was steady in December at November’s 11.1%. A shortage of foreign currency is driving up the cost of imported goods, including food. Meanwhile, annual average inflation inched up from 11.3% in November to 11.4% in December. Core inflation, which excludes volatile items such as fresh fruit and vegetables, came in at 7.2% in December, which was lower than the 7.4% tallied in November.
Author: Carl Kelly, Economist