Egypt’s annual urban inflation registered 7.3 per cent in the twelve months to June 2012, says the Central Agency for Statistics and Mobilisation (CAPMAS).

This is down from 8.3 per cent in the 12 months to May.

The increase in food prices slowed down in June causing the overall drop in inflation. Food items have the highest weight in the inflation index.

Food inflation fell from 10.8 per cent in the twelve months to May 2012 to 9.2 per cent in the twelve months to June 2012.

The price increases of tobacco saw a substantial drop, CAPMAS data showed, falling from an annual 31 per cent in May 2012 to just 19 per cent in June 2012.

Comparing June 2012 to May 2012, overall prices contracted for the second month in row by 0.6 per cent as food prices dropped 1.3 per cent. 

Increases in prices of furniture and equipment also slowed down on a monthly basis, registering 0.26 per cent in June 2012 down from 3 per cent a month earlier.