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Egypt's monthly inflation rate down by 1 pct in June: statistics

Source: Xinhua| 2019-07-10 18:50:07|Editor: xuxin
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CAIRO, July 10 (Xinhua) -- Egypt's monthly inflation rate decreased in June by one percent in comparison to May, the country's statistics authority said on Wednesday.

"The annual-based inflation rate dropped to 8.9 percent in June compared to 13.8 percent in the same month in 2018," the Central Agency for Public Mobilization and Statistics (CAPMAS) added.

The report added that food prices decreased by 2.3 percent in June in comparison to the previous month, which is the main reason for the decline of the monthly inflation rate.

Ihad el-Dosoqy, professor of economy at Sadat Academy for Administrative Sciences, attributed the deceleration partly to the lower prices of vegetables which are a key contributor to high inflation.

The prices of vegetables declined by 10 percent in June compared to May, according to the CAPMAS report.

The analyst told Xinhua that the prices of vegetables have caused 1.40 points in the rate of monthly changes.

He added that the Central Bank of Egypt's policy that kept the rates steady in May and June have stabilized the food prices.

However, el-Desoqy predicted the inflation might increase because of the decision of hiking the fuel prices.

Egypt raised fuel prices on July 5 to 30 percent to meet the conditions of the International Monetary Fund's 12-billion-U.S.- dollar loan that saw highest inflation level of 33 percent in 2017.

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