Egypt: Inflation Eases to Slowest Pace in 18 Months
Inflation rate in Egypt fell to an 18 month low in June, giving the central bank more room to keep its key interest rate at its lowest level in a year and a half.
Urban inflation, the benchmark rate that the central bank monitors, slowed to 9.9 percent from 10.2 percent in the previous month. The nationwide inflation rate was unchanged at 9.8 percent.
Urban consumer prices increased 0.4 percent on the month, led by food and drinks, which make up 47 percent of the consumer price index and rose 0.5 percent. The costs of education and entertainment increased 4.7 percent, and the price of miscellaneous goods and services rose a monthly 0.1 percent. The rest of the 12-component index, which includes tobacco, clothing, furniture and health care, remained flat.
The Egyptian economy probably grew no more than 4.7 percent in the fiscal year that ended last month. The economy expanded 7.2 percent in the previous year.
