Annual inflation in urban parts of Egypt accelerated at its fastest pace in almost five years, climbing 18.7% year-on-year in November, versus 16.2% the previous month
It was the highest reading since December of 2017, sending inflation above the upper limit of the central bank’s 5-9% target range for the ninth straight month, largely due to the ongoing depreciation of the pound.
Main upward pressure came from prices of food & non-alcoholic beverages (30.9% vs 23.9% in October), by far the most relevant in the CPI basket. On a monthly basis, consumer prices were up 2.6% in November, from a 2.5% increase in the previous month
On a monthly basis, consumer prices rose 2.3%, down from 2.6% in October.
November’s data also raise the chances of the Egyptian central bank hiking interest rates again at its next monetary policy meeting on Dec. 22.
It raised the benchmark rate 200 points to 13.25% in an unscheduled meeting in October, the day of the last devaluation.