By: Yassmine ElSayed
CAIRO, Feb. 10 (SEE) - CAPMAS statistics agency announced
that Egypt’s annual urban consumer price inflation increased to 12.7 percent in
January from 12.0 percent in December.
According to Reuters, Inflation had cooled in December after
an increase in fuel, electricity and transportation prices last year had sent
the rate up to a high of 17.7 percent in October.
Egypt has implemented a series of tough austerity measures,
including deep cuts to energy subsidies, to help meet the terms of a $12
billion IMF loan program it signed in late 2016.
Allen Sandeep, head of research at Naeem Brokerage said “The
rise in inflation is because of food and nonalcoholic beverages, wherein
month-on-month, inflation came in at 0.9 percent versus -6.7 percent in
December.”
Radwa El-Swaify, head of research at Pharos Securities
Brokerage, agreed that food and beverages were the main reason for the rise in
inflation.
“What is happening is price adjustment by manufacturers with
the beginning of the new year to adjust profit margins,” she said.
“Do not forget that manufacturers’ profit margins fell from
July 1 with the reduction of subsidies, and some did not raise prices then,
fearing a decline in sales.”
Continuous increases in fruit and vegetable prices had
prompted authorities to sell some basic foods at below-market prices.
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