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Egypt Inflation Slows More than Expected in January

People walk in front of shop markets in the old Cairo, Egypt January 12, 2024. REUTERS/Amr Abdallah Dalsh/File Photo Purchase Licensing Rights
People walk in front of shop markets in the old Cairo, Egypt January 12, 2024. REUTERS/Amr Abdallah Dalsh/File Photo Purchase Licensing Rights
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Egypt Inflation Slows More than Expected in January

People walk in front of shop markets in the old Cairo, Egypt January 12, 2024. REUTERS/Amr Abdallah Dalsh/File Photo Purchase Licensing Rights
People walk in front of shop markets in the old Cairo, Egypt January 12, 2024. REUTERS/Amr Abdallah Dalsh/File Photo Purchase Licensing Rights

Egypt's annual urban consumer price inflation dropped to 29.8% in January from 33.7% in December, the state statistics agency revealed, coming in well below analysts' expectations.

Month-on-month, prices rose by 1.6% in January, up from 1.4% in December. Food prices climbed by 1.4%, down from 2.1% in December. In the year to January, food prices rose by 47.5%, down from 60.5% in the year to December.

A median of 18 analysts had forecast annual inflation to slow to 32.5%, according to a Reuters poll.

Egypt's inflation rate has been sliding from a historic high of 38.0% in September.

Core inflation, which excludes fuel and some volatile food items, declined to 29.0% in January from 34.2% in December, the central bank said. A median of five of the analysts had expected it only to slow to 31.9%.

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Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
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Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo

Oil prices were up slightly on Friday on stronger-than-expected US economic data that raised investor expectations for increasing crude oil demand from the world's largest energy consumer.

But concerns about soft economic conditions in Asia's biggest economies, China and Japan, capped gains.

Brent crude futures for September rose 7 cents to $82.44 a barrel by 0014 GMT. US West Texas Intermediate crude for September increased 4 cents to $78.32 per barrel, Reuters reported.

In the second quarter, the US economy grew at a faster-than-expected annualised rate of 2.8% as consumers spent more and businesses increased investments, Commerce Department data showed. Economists polled by Reuters had predicted US gross domestic product would grow by 2.0% over the period.

At the same time, inflation pressures eased, which kept intact expectations that the Federal Reserve would move forward with a September interest rate cut. Lower interest rates tend to boost economic activity, which can spur oil demand.

Still, continued signs of trouble in parts of Asia limited oil price gains.

Core consumer prices in Japan's capital were up 2.2% in July from a year earlier, data showed on Friday, raising market expectations of an interest rate hike in the near term.

But an index that strips away energy costs, seen as a better gauge of underlying price trends, rose at the slowest annual pace in nearly two years, suggesting that price hikes are moderating due to soft consumption.

China, the world's biggest crude importer, surprised markets for a second time this week by conducting an unscheduled lending operation on Thursday at steeply lower rates, suggesting authorities are trying to provide heavier monetary stimulus to prop up the economy.