Inflation in Egypt is about 20%-Reuters
2022.12.06 13:32
Inflation in Egypt is about 20%-Reuters
Budrigannews.com – Title expansion in Egypt is probably going to have accelerated in November, a Reuters survey displayed on Tuesday, after a cash depreciation in October and proceeded with limitations on imports put reestablished vertical squeeze on costs.
Inflation reached its highest level since December 2017 in November, according to the median forecast of 14 analysts, rising from 16.2% in October to 18.75% in November.
Arqaam Capital’s head of research, Jaap Meijer, said that “higher import bills” were to blame for the faster price increases.
Prior to the crisis in Ukraine, the central bank restricted imports in February and has been devaluing the currency since March. It lowered the Egyptian pound’s price by 14.5 percent on Oct. 27 and has since allowed it to weaken gradually.
Charles Robertson, chief economist at Renaissance Capital, stated, “The currency had moved 25% from a year before, and that would add 2.5-5 percentage points in any country, and we’re up 10 percentage points.”
“As a result, foreign exchange probably caused a third of the price increases from a year ago, oil probably caused a fifth, and global wheat prices probably caused at least a tenth. Between now and the end of October 2022, the Egyptian pound, food, and oil would easily account for two-thirds of the rise.”
Core inflation was expected to rise from 19% in October to 21.60%, according to the analysts surveyed.
When the central bank meets again on December 22, the higher inflation would put pressure on it to raise interest rates.
On Thursday, the data on inflation for November will be made available by the state statistics agency CAPMAS.
