Egypt Inflation Rate Drops as Currency Float Shock Eases
- Monthly inflation rate at lowest level since November 2015
- Drop in prices offers good news in poverty-stricken nation
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Egypt’s monthly urban inflation rate fell for the first time in more than two years as the impact of lifting currency controls eased.
The month-on-month inflation rate came in at minus 0.2 percent in December, its lowest rate since November 2015, while the annual inflation rate eased to 21.9 percent from 26 percent the previous month, according to the state-run statistics agency CAPMAS. Annual prices were affected by a slowing of the increase in food and beverage prices, which make up the largest single component of the basket of goods and services. Annual food and beverage prices rose by 25.2 percent in December compared to 32.3 percent the previous month.