Egypt inflation slows in September

Deya Abaza, Thursday 9 Oct 2014

Annual headline inflation rate falls to 11.1% in September, down from 11.4% recorded in August 2014

Inflation
Egypt has seen a spike in inflation since state-subsidy cuts were introduced in July (Photo:AP)

Egypt's annual headline inflation rate fell to 11.1 percent in September, from 11.4 percent the previous month, state statistical body CAPMAS announced on Thursday.

Early in September, Egypt's central bank had decided to keep the overnight deposit rate, overnight lending rate and the rate of the bank's main operation unchanged at 9.25 percent, 10.25 percent and 9.75 percent, respectively.

In July, the bank had raised interest rates to contain inflation as the government hiked the prices of state-subsidised fuels and electricity in a drive to reign in the budget deficit.

"This is a minor slow-down" Walaa Hazem, Fund Manager at Cairo-based HC Securities, told Ahram Online.

"Inflation is still expected to keep rising in coming months on the back of the subsidy cuts," he added, echoing the views of other economists who spoke to Ahram Online since the fuel price hikes were implemented. 

 

 

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