Cairo - Mubasher: Monthly inflation rate in Egypt slowed to 1.7% in August, after recording 2.5% in July, while the annual inflation rate recorded 13.6% in August, up from 13% in July.
The increase in inflation rate for the past three months was expected due to the fiscal consolidation adopted by the Egyptian government in the beginning of fiscal year 2018/2019, according to Pharos Research.
The monthly inflation in August was mainly attributed to the increase in vegetables prices by 8% month-on-month, fruits prices by 4.9%, and natural gas and gas cylinders by 5.5%.
The research firm expects monthly inflation will decelerate below 1% in the fourth quarter of the year between the months of October to December.
Pharos also expects the monthly inflation rate to decelerate to 1% in September and 0.7% in October, and for the annual inflation to stabilize at 13.6% in September and to decelerate to 13.3% in October.
