Annual inflation hits 6-month low in February

Annual headline consumer price inflation slowed to 9.13 percent in February, the lowest rate in six months.

Annual core inflation — which excludes volatile goods like fruits and vegetables as well as subsidized goods and services — also eased slightly in February, measuring 7.5 percent compared to 7.72 percent in January.

The Central Bank of Egypt (CBE) attributes the decline in the annual rate to a positive base effect from the previous year.

By contrast, the monthly headline rate accelerated by 0.97 percent, compared to just 0.11 percent in January.

According to CBE statistics, the monthly increase was driven by fruit and vegetable prices, which rose by 1.1 percent after declining for the previous three months. Prices for government-regulated goods also rose by 1.9 percent after holding steady for the last three months.

These figures come as Egypt is faced with a deepening currency crisis and a growing spread between the official and black market exchange rate.

Returning to single-digit inflation could encourage the CBE to devalue the pound, a move some analysts predict is likely to come soon.