Cairo - Mubasher: Annual inflation rate in Egypt recorded the slowest acceleration pace in March since the EGP flotation, despite the low base effect of the corresponding period in 2016, Pharos Research said in a recent report.
The monthly inflation rate continued to decelerate from 2.7% month-on-month in February to 2.1% in March.
“In March, core food items’ contribution to the monthly inflation rate declined, from 1.5% in February, to 0.5% in March. Non-food items’ contribution was barely stable at 0.4% in March. On the other hand, the contribution of fruits and vegetables rose, from 0.8% in February, to 1.2% in March,” the report added.
Pharos reiterated that the monthly inflation rate will be affected by two seasonal drivers in the next two months; the first being Ramadan, which traditionally witnesses an inflation rate acceleration, and the second the wheat harvest season, which tends to diffuse sharp food price movements.
The research firm also noted that at the current exchange rate level, the pass-through risks remain limited.
