The annual inflation rate in Egypt declined to 7.8 percent in July, according to a monthly statement issued by the Central Agency for Public Mobilization and Statistics (CAPMAS) on Thursday.
On a monthly basis, the rate dropped in July from June by 1.5 percent, registering 307.8 points in July down from 312.5 points in June, according to the CAPMAS statement.
The statement added that the annual inflation rate reached 11.7 percent before the end of July due to the increase in fuel prices during that month, compared to 8 percent during June.
In May, the annual inflation rate in Egypt had reached 14.1 percent, a 1 percent increase on April.
In June 2019, Egypt’s annual urban consumer price inflation fell sharply for the first time this year to 9.4 percent from 14.1 percent in May, continuing its drop to 7.8 percent in July.
The annual inflation rate declined during the past June to reach 8.9 percent compared to the same time in 2018 which had recorded 13.8 percent, while the inflation rate recorded 12.4 percent during the first half of 2019.
According to Trading Economics, "the annual inflation rate in Egypt dropped to 8.7 percent in July 2019, the lowest since August 2015, from 9.4 percent in the month prior. The deceleration in consumer prices was most likely due to a slower rate of increase in prices of food & non-alcoholic beverages, 9 percent compared to 10.4 percent in June, as well as a high base effect".
"Meanwhile, costs rose further for housing and utilities by 9.8 percent compared to 7.5 percent, and transport by 8.7 percent compared to 2.1 percent, according to Trading Economics.
Earlier this month, Egypt implemented its latest round of fuel subsidy cuts, raising prices by 16 to 30 percent, as it neared the end of its loan agreement with the International Monetary Fund (IMF) for economic reform.
Also, the Egyptian government raised prices on cooking gas, oil, electricity and some food items.
On a monthly basis, consumer prices inched up 1.8 percent in July, after decreasing 0.8 percent in the previous month.
Inflation Rate in Egypt averaged 9.49 percent from 1958 until 2019, reaching an all time high of 35.10 percent in June of 1986 and a record low of -4.20 percent in August of 1962, according Trade of Economics.