• All Share : 49966.7997
    UP 1.71%
    Top40 - (Tradeable) : 44383.7375
    UP 1.74%
    Financial 15 : 16432.9949
    UP 1.24%
    Industrial 25 : 64049.2053
    UP 1.59%
    Resource 10 : 36075.2531
    UP 3.51%

  • ZAR/USD : 13.3016
    UP 1.24%
    ZAR/GBP : 20.4398
    UNCHANGED0.00%
    ZAR/EUR : 14.8719
    UP 0.16%
    ZAR/JPY : 0.1089
    UP 0.93%
    ZAR/AUD : 9.542
    UP 0.10%

  • Gold US$/oz : 1125.83
    UNCHANGED0.00%
    Platinum US$/oz : 1003.45
    UNCHANGED0.00%
    Silver US$/oz : 14.54
    UNCHANGED0.00%
    Palladium US$/oz : 566
    UNCHANGED0.00%
    Brent Crude : 49.81
    UNCHANGED0.00%

  • All data is delayed by 15 min. Data supplied by Profile Data
    Hover cursor over this ticker to pause.

Sun Aug 30 07:54:22 SAST 2015

Inflation relief for Egyptian economy

Reuters | 10 July, 2011 23:26

Egyptian inflation in the year to June eased slightly because of lower food prices compared to a year earlier, supporting a hold in interest rates this month to support an economy reeling from the ousting of President Hosni Mubarak.

Urban consumer inflation was 11.80% in the 12 months to June from 11.87% in May, Egypt's state statistics agency reported yesterday. But, on a monthly basis, prices rose 0.4% last month as prices of food and tobacco topped May's.

Analysts expect the central bank to keep interest rates steady in July to stimulate growth, saying the government was more concerned about ending the recession than fighting inflation.

Raising interest rates to combat food-driven inflation would have a limited or no effect on overall prices.

Simon Williams, chief economist at HSBC Middle East, said he expected Egyptian inflation to ease this month and predicted that the central bank would leave its benchmark overnight deposit and lending rates unchanged on July 21.

"The flat headline number masks a weaker underlying inflationary trend. I expect to see price growth in single digits next month for the first time in two years."

Food and beverage prices, which account for 44% of the weighting of the basket Egypt uses to measure inflation, decelerated 18.98% in the year to June from 19.8% in May.

Core annual inflation, which strips out subsidised goods and volatile items, rose to 8.94% in the year to June from May's 8.81%.

SHARE YOUR OPINION

If you have an opinion you would like to share on this article, please send us an e-mail to the Times LIVE iLIVE team. In the mean time, click here to view the Times LIVE iLIVE section.