Egypt's urban consumer inflation jumps to 14.8 pct in June - state statistics agency

Sunday 10-07-2016 02:31 PM

A man counts his bills at a foreign exchange office in downtown Cairo June 5, 2014. REUTERS/Amr Abdallah Dalsh

CAIRO, Jul 10 (Aswat Masriya) - Egypt's urban consumer inflation rate rose to 14.8 per cent in June from 12.9 per cent in May, state statistics agency said on Sunday.

The general index of consumer prices pointed to an increase of 0.8 per cent in June compared to 3.2 per cent in May, according to the state-run Central Agency for Public Mobilisation and Statistics (CAPMAS) report.

The agency attributed the rise mainly to the increase in prices of vegetables, poultry, meat, dairy products and fruits, as food demands normally increase during the Muslims' holy month of Ramadan, which began on June 6.

The clothes have also registered a 2.7 per cent increase compared to the past month. The agency associated the rise with the Eid festivities, which marks the end of the fasting month of Ramadan.

By the end of the fiscal year 2015/16, inflation rate stood at 10.7 per cent, compared with 11 per cent for the previous year, the CAPMAS added.

Egypt's central bank raised its key interest rates by 100 basis points last month, in a move intended to rein in surging inflation and ease downward pressure on the Egyptian pound, following the increase in inflation in May.

The cash-strapped Egyptian government is currently facing the consequences of years of political turmoil triggered by the 2011 Uprising that toppled former president Hosni Mubarak, halving the country’s foreign reserves and scaring away tourists and investors. 

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