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Egypt's Headline Inflation Rises to 6.6%

Egypt's Headline Inflation Rises to 6.6%

Monday, 11 October, 2021 - 08:30
Egyptian laborers work at a construction site of a new road as the pyramid of Khufu or "Cheops" is seen in the back, in Giza, Egypt, November 9, 2020. (Reuters)

Egypt's annual urban consumer price inflation (CPI) climbed to 6.6 percent year on year from 5.7 percent in August, data from the country's statistics agency CAPMAS showed on Sunday.

The rate remains well within the target range of between 5 percent and 9 percent set by the central bank, which next meets on Oct. 28 to decide interest rates.

"Monthly inflation is higher than we had anticipated. It's mainly explained by the jump in vegetable and meat prices. The food index is up 3.5 percent month on month," said Allen Sandeep of Naeem Brokerage.

The central bank held rates steady at its last meeting on Sept. 16, saying that global financial conditions continued to be "accommodative".

Egypt's fuel pricing committee also raised domestic prices in a quarterly review on Friday, indicating that more price rises may lie ahead.

Core inflation, which strips out volatile items such as food, rose to 4.8 percent year on year in September, from 4.5 percent a month prior.

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