Egypt’s Annual Inflation Falls to 8.9% in June: CAPMAS

Egypt’s annual inflation rates fell to 8.9% in June 2019 from 13.8% in May, The Central Agency for Public Mobilization and Statistics (CAPMAS) said on Wednesday.

"The consumer price index (CPI) declined by 1% month-on-month, recording 307.8 points last month," the CAPMAS added.

"Vegetable prices rose 17.6% year-on-year in June, but fell 10% compared to May," it added.

The Central Bank of Egypt’s CBE monetary policy committee will meet on Thursday. It held rates steady at its last two meetings, in May and March, after a surprise cut in February.

Egypt raised fuel prices last week by between 16% and 30% as part of an IMF-backed economic reform program that saw inflation rise to a high of 33% in 2017.

While economists had predicted a softer deceleration in inflation in June, most continued to predict the bank would hold rates until the fuel price hikes’ impact is tested.