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Egypt Annual Inflation Eases for First Time Since Float

  • Annual inflation fell to 29.7 percent in May from 31.5 percent
  • Inflation drop likely to be temporary, Arqaam Capital says
Updated on

Egypt’s monthly inflation rate held steady in May, offering new indications that the price surges triggered by the lifting of currency controls were plateauing as the government pushed ahead with its economic reform efforts.

The month-on-month urban inflation rate rose 1.7 percent , unchanged from April. The annual rate eased to 29.7 percent from 31.5 percent in April, its first reversal since October, the month before the floating of the pound, according to data posted on the website of the state-run statistical agency, CAPMAS. The central bank’s Nov. 3 decision to lift currency exchange restrictions sent prices soaring, further pressuring a nation with widespread poverty.