Egypt's December Inflation Accelerates to Annual 21.3%

The cleaning tools that are made from feathers are displayed at a shop in the Toulon Quarter of Cairo, Egypt, November 30, 2021. REUTERS/Hayam Adel
The cleaning tools that are made from feathers are displayed at a shop in the Toulon Quarter of Cairo, Egypt, November 30, 2021. REUTERS/Hayam Adel
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Egypt's December Inflation Accelerates to Annual 21.3%

The cleaning tools that are made from feathers are displayed at a shop in the Toulon Quarter of Cairo, Egypt, November 30, 2021. REUTERS/Hayam Adel
The cleaning tools that are made from feathers are displayed at a shop in the Toulon Quarter of Cairo, Egypt, November 30, 2021. REUTERS/Hayam Adel

Egyptian annual urban consumer inflation in December rose to 21.3% from 18.7% in November, exceeding analyst expectations, data from the statistics agency CAPMAS showed on Tuesday.

The inflation figure was the highest since December 2017, when it hit 21.9%. The price rises followed a currency devaluation in October and restrictions on imports.

The median forecast in a Reuters poll of 15 economists had projected inflation of 20.50%. Five economists also forecast that core inflation would come in at a median 23.6%, up from 21.5% in November.

The central bank allowed the Egyptian pound to depreciate by about 14.5% on Oct. 27 and let its value continue to weaken slowly and incrementally in November and December.

"Food and beverages were up 4.6% month-on-month (adding to the 4.5% in November), impacted mainly by bread and cereals, dairy, vegetables and meat," said Allen Sandeep of Naeem Brokerage.

This goes somewhat towards absorbing a 25% devaluation in late October but portends more inflation to come, Sandeep said.

"Now combined monthly inflation has risen by around 7% over three months. This is close to a 30% pass through to the urban CPI index. With the new round of devaluation ongoing, which we expect to be roughly 15%, we can expect annual CPI to touch 25% by February."

Egypt's surging prices will add to pressure on the central bank's Monetary Policy Committee to raise interest rates when it next meets on Feb. 2.



Indonesia, Qatar to Create $4 Bln Joint Fund Investing in Indonesia 

A sign for Indonesia's sovereign wealth fund Danantara is seen in front of its headquarters in Jakarta, Indonesia, February 28, 2025. (Reuters) 
A sign for Indonesia's sovereign wealth fund Danantara is seen in front of its headquarters in Jakarta, Indonesia, February 28, 2025. (Reuters) 
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Indonesia, Qatar to Create $4 Bln Joint Fund Investing in Indonesia 

A sign for Indonesia's sovereign wealth fund Danantara is seen in front of its headquarters in Jakarta, Indonesia, February 28, 2025. (Reuters) 
A sign for Indonesia's sovereign wealth fund Danantara is seen in front of its headquarters in Jakarta, Indonesia, February 28, 2025. (Reuters) 

Sovereign wealth fund Danantara Indonesia said it will form a $4 billion joint fund with the Qatar Investment Authority that will focus on investment in Southeast Asia's largest economy.

The fund will focus on projects in downstream industries, or industries that process Indonesian commodities, as well as renewables and health facilities and other relevant sectors, such as technology, Danantara said in a statement on Tuesday.

Indonesia and Qatar will each commit $2 billion to the fund, it said.