Egypt's annual Consumer Price Index (CPI) rose to 10.13 percent in December, compared to 9.1 percent in November, the country's central bank announced on Thursday.
Egypt has seen a price hike in inflation following fuel subsidy cuts in July that triggered up to a 78 percent rise in prices at the pump. Inflation increased to 11.5 percent in October before slowing in November.
The inflation rate for food and beverages, which contributed 43 percent of CPI, increased to 8.4 percent in December from 7.7 percent a year prior, shows a CAPMAS report.
The second largest contributor was alcoholic beverages, cigarettes and air conditioners rising more than 32 percent. Housing, water and electricity, the third biggest contributor to CPI rate at 4.9 percent, increased by 3.3 percent.
"Given that December’s rise in inflation was largely driven by housing and food, we don’t think it will trigger a [interest] rate hike, but equally a rate cut at next week’s meeting is now off the table," Middle East economist at Capital Economics, Jason Tuvey, said in an emailed statement.
Egypt's lending rate and deposit rate are at 10.25 percent and 9.25 percent respectively and are expected to remain unchanged at the next meeting for the central bank's monetary committee due next week.