Cairo - Mubasher: Monthly inflation rate in Egypt has been decreasing considerably, while annual inflation rate has witnessed eased rates of increase, but MubasherTrade Research does not expect the trend to continue, according to a recent report.
The research firm is expecting a change for the upcoming months, in view of the tremendous changes witnessed in the beginning of fiscal year 2017/2018, including fuel subsidy cuts, electricity re-pricing and VAT rate increase by 1%
“We think the inflation arrow is just being pulled backward to be shot, expected to hit an average of 35% during Q1-FY2017/18,” the report indicated.
The Central Agency for Public Mobilization and Statistics (CAPMAS) said on Monday that annual headline inflation stood at 30.9% in June.
Last Thursday, the Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) had decided to raise interest rates by 200 basis points for the second time this year.
The overnight deposit rate was raised to 18.75%, while the lending rate was increased to 19.75%.
