Egypt's urban inflation accelerates to 10.5% in March
Reuters
Published Apr 10, 2022 05:06AM ET
Updated Apr 10, 2022 09:55AM ET
By Patrick Werr
(Reuters) -Egypt's annual urban consumer price inflation accelerated in March to 10.5%, its highest in nearly three years and faster than analysts had expected, data from the state statistics agency CAPMAS showed on Sunday.
The inflation figure, up from 8.8% in February, was greater than a median forecast of 10% in a Reuters poll of 14 analysts.
The price increases were caused in part by commodity shortages after the Russian invasion of Ukraine, sending inflation above the central bank's 5-9% target and its 9.25% overnight lending rate.
Some analysts expect inflation to increase by even more in the months ahead.
Core inflation, which strips out volatile items such as food, jumped to 10.1% year-on-year in March from 7.2% in February, the central bank said on Sunday, its highest since June 2018.
"The rise in inflation trends is widely expected and will peak by August 2022, after which it will start to normalise," said Radwa El Swaify of Pharos Securities Brokerage.
CI Capital's Sara Saada, meanwhile, said the government was expected to increase fuel prices this month.
"Accordingly, we expect monthly inflation to peak in April to record annual inflation between 12.5-13%, which reflects higher petroleum products prices," she said.
Naeem Research said the increase was largely attributable to higher commodity prices and the devaluation of the currency on March 21.
"With the full impacts of the Egyptian pound depreciation (of 15% versus the dollar) expected to filter down into the economy, we expect inflation to rise further in April," it said in a note.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.