With LPG prices down, inflation eases to 11 percent in April

Annual consumer inflation slowed to 11 percent in April, down from 11.8 percent in March, according to state statistics agency CAPMAS. The monthly rate declined by 0.1 percent.

CAPMAS attributed the monthly decline to a 44.2 percent drop in the price of butane gas cylinders. The fuel, which households not connected to the natural gas grid rely on for cooking, has been in short supply for months.

Government subsidies keep the official price at LE8, but shortages and corruption in the supply chain have pushed consumers into the black market. In some provinces, prices have reportedly exceeded LE100 per cylinder.

Throughout April, the Ministries of Interior and Supply and Internal Trade launched a nationwide campaign to crack down on the LPG black market.

The decline in LPG prices in April helped push down the entire housing, water, gas and fuel index by seven percent, contributing to a 0.94 point decline in the monthly rate for entire index.

The food and beverage index was up by 1.4 percent, with declining prices for poultry and eggs offset by higher prices for fresh fruits and vegetables, fish and seafood and red meat. According to 2013 figures, more than 40 percent of the average Egyptian household’s expenditures are on food, with the figure rising above 50 percent for the poorest families.

Inflation has surged since a series of price increases enacted in July 2014. A fall in global oil prices has kept core inflation in check, but inflation has remained high due to the rising cost of government regulated items like fuel and electricity, as well as volatile commodities like fruits and vegetables.