CBE: Core Inflation Drops to 3.6%

The Central Bank of Egypt (CBE) announced on Wednesday that the annual rate of core inflation recorded 3.6% in January 2021, compared to 3.8% in December 2020, down 0.2%.

Core consumer prices in Egypt increased 3.64% in January of 2021 over the same month in the previous year.

[caption id="attachment_212698" align="aligncenter" width="1443"] Annual rate of core inflation[/caption]

CBE added that the consumer price index (CPI) recorded a monthly rate of 0.5% in January compared to a rate of 0.7% year-on-year, and a monthly rate of zero in December 2020.

CPI in Egypt decreased to 110.10 points in January of 2021 from 111.60 points in December of 2020, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).

[caption id="attachment_212693" align="aligncenter" width="1421"] Consumer Price Index (CPI)[/caption]

For urban consumers, inflation MoM recorded a negative rate of -0.4% in January 2021, compared to 0.7% a year earlier, and a negative monthly rate of -0.4% in December 2020

Moreover, the annual rate of inflation recorded 4.3% in January 2021, compared to about 5.4% in December 2020.

[caption id="attachment_212692" align="aligncenter" width="1467"] Annual inflation rate[/caption]

Egypt's annual inflation rate dropped to 4.3% in January of 2021 from 5.4% in December 2020. It was the lowest inflation rate since September last year, as food and beverages prices continued to decline -0.5%.

On a monthly basis, consumer prices fell 0.4% in January, still the steepest monthly decline since June 2019, unchanged from the previous month.