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Egypt’s consumer price inflation drops to 4.9% in May 2021

Urban consumer price inflation climbed to 4.8 percent in May YoY, up from 4.1 percent noted in April

By: Business Today Egypt

Thu, Jun. 10, 2021

May 2021 saw Egypt’s annual headline inflation record 4.9 percent in May 2021, compared to 5 percent in May 2020, states the Central Agency for Public Mobilization and Statistics (CAPMAS).

On a monthly basis, monthly headline inflation recorded 112.9 points in May 2021, marking an increase of 0.6 percent compared to April 2021.

Egypt’s annual inflation rate in urban areas rose to 4.8 percent in May 2021, up from 4.1 percent in April.

CAPMAS attributed the rise in inflation to the increase in prices of some commodities during the month, as food and drink prices by 1.3 percent as a result of fruit prices by 9.0 percent, vegetables by 5.3 percent, and the group of fish and seafood by 0.8 percent.

It also referred to the increase in the expenses on private transportation by 1.9 percent, ready-made clothes by 1.2 percent and rent for housing by 0.4 percent, despite the decrease in meat and pourtly prices by 0.3 percent.

The sustainable development plan for 2020/2021 expected the inflation rate to increase to 9.8 percent if the crisis continued until December 2020.

Monthly core CPI inflation, computed by the Central Bank of Egypt, recorded 0.3 percent in May 2021 compared to 0.3 percent in the same month of the previous year and to 0.7 percent in April 2021 stated the Central Bank of Egypt (CBE) in a statement later that day.

The annual core inflation rate recorded 3.4 percent in May 2021, compared to 3.3 percent in April 2021, the CBE added.

Inflation remains within the Central Bank of Egypt’s (CBE) target range of 9 percent, plus or minus 3 percentage points, despite the precautionary measures taken aiming to curb the spread of coronavirus that are expected to raise the rate of inflation.