Egypt's annual inflation hits 6-month high in November up to 11.8%

Ahram Online , Thursday 10 Dec 2015

File Photo: Egypt has seen a spike in inflation since state-subsidy cuts were introduced in July 2014 (Photo: AP)

Egypt's annual inflation rate accelerated 11.8 percent in November compared to 10.3 percent in October, official statistics agency CAPMAS announced on Thursday.

The annual consumer price index registered in November the highest rate since May 2015, when the high food prices drove it to hit 13.1 percent. 

The Egyptian government has introduced discounted foodstuff all over the nation in an effort to curb rising food prices.

Prices of food and beverages, the main contributor in the consumer price index, saw an annual rise of 15.1 percent in November.

Urban inflation rose 11.1 percent in Novemeber year-on-year, while rural inflation increased 12.7 percent in the same period.

As it is back in the double-digits, UK-based macroeconomic research company Capital Economics said that the impact of the latest inflation figures on the interest rate is highly uncertain given that the Monetary Policy Committee meeting (scheduled to take place on 17 December) will be the first under new Central Bank of Egypt governor, Tarek Amer.

“There is growing risk that CBE will be spooked and decide to hike rates,” the company said in e-mailed comments over Egypt’s latest consumer price index.

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