Price hikes of vegetables drive Egypt's May inflation to rise (Photo: Reuters)
Egypt’s annual urban inflation rose to 8.2 percent in May, recording 133.6 points on Egypt’s Consumer Price Index, state statistics body CAPMAS announced on Monday.
However, the rate of urban inflation declined by 0.2 percent in May compared to April 2013, CAPMAS stated.
The governmental body attributed the Consumer Price Index’s annual rise to the hikes in the cost of transportation (up 3.4 percent) as well as the increase in the prices of vehicles by 16.7 percent since May 2012.
Vegetables also have witnessed a price rise of 5.6 percent.
According to CAPMAS’s report, Egyptian households’ higher expenses on electricity and natural gas bills – which rose by 16.2 percent and 105.7 percent respectively in May 2013 compared to the same period of last year –were also behind the inflation increase.
Egypt's government has recently moved to reduce subsidies on electricity and natural gas, which account for as much as 5 percent of the country's current subsidy bill.
Prices for consumers now increase with consumption, with tariffs on monthly consumption of up to 200 kilowatts per hour increasing by 4.4 percent. Taking into account a previous increase, prices have risen by ten percent since November of last year.
Egypt’s annual rural inflation grew to 10 percent in May 2013.