Egypt's annual headline inflation grows to 10.7 pct in Jan: CAPMAS

Egypt’s annual headline inflation rose to 10.7 percent in January 2016 compared to 9.4 percent in the same month last year to register 175.5 points, state’s statistics body CAPMAS said in e-mailed statement on Wednesday.

The annual inflation, however, has registered a decline from December 2015, since the annual consumer price index (CPI) stood at 11.9 percent with CAPMAS attributing the ease to a 1.3 percent drop in the cost of food and beverage during this period to record 13.9 percent.

The Egyptian government has been introducing discounted foodstuff nationwide since November 2015 in an effort to curb rising food prices.

In December, the Central Bank of Egypt (CBE) decided to raise interest rates by 50 basis points in an effort to mitigate inflation as it expected the rate continue to rise, despite the fall in prices internationally, due to "underlying domestic inflationary pressures."

World food prices fell to near a seven-year low in January, weighed down by declines for agricultural commodities, particularly sugar, UN’s Food and Agriculture Organization stated last week.