Egypt’s December inflation accelerates to annual 21.3%

Egypt’s December inflation accelerates to annual 21.3%

The inflation figure was the highest since December 2017, when it hit 21.9 per cent. The price rises followed a currency devaluation in October and restrictions on imports

A woman holding her baby shops at a vegetable market in Cairo. The median forecast in a Reuters poll of 15 economists had projected inflation of 20.50 per cent. — Reuters

By Reuters Published: Tue 10 Jan 2023, 4:35 PM

Egyptian annual urban consumer inflation in December rose to 21.3 per cent from 18.7 per cent in November, exceeding analyst expectations, data from the statistics agency CAPMAS showed on Tuesday.

The inflation figure was the highest since December 2017, when it hit 21.9 per cent. The price rises followed a currency devaluation in October and restrictions on imports.

The median forecast in a Reuters poll of 15 economists had projected inflation of 20.50 per cent. Five economists also forecast that core inflation, due later on Tuesday, would come in at a median 23.6 per cent, up from 21.5 per cent in November.

The central bank allowed the Egyptian pound to depreciate by about 14.5 per cent on October 27 and let its value continue to weaken slowly and incrementally in November and December.

“Food and beverages were up 4.6