Cairo - Mubasher: Pharos Research estimates seasonally adjusted monthly inflation rate to be around 1.1% month-on-month in June, which is slightly below May’s monthly inflation rate.
“Going forward, we reiterate our projection that the inflationary shock of the recently introduced fiscal reforms would last for 3 months, in which the annual rate would accelerate to around 33% in the first quarter of fiscal year 2017/2018,” the research firm added in a report published on Monday.
“In June, the contribution of fruits and vegetables declined sharply from more than 0.4% in May to -0.4% in June, mainly due a decline in vegetable prices in June.”
“Meanwhile, non-food items’ contribution was stable at 0.8% in June, compared with 0.7% in May.”
“Core food items’ contribution to the monthly inflation rate remained unchanged at 0.8% in June, versus 0.7% in May.”
Pharos also said that this can be explained by a 10.4% month-on-month increase in clothing and footwear prices during the Eid season.
