Cairo (Reuters) – The Egyptian Central Agency for Public Mobilization and Statistics data showed today, Wednesday, that Urban consumer price inflation in Egypt It fell to 4.3 percent year-on-year in January from 5.4 percent in December, down from the central bank’s target levels of 7 percent, plus or minus two percentage points.
The price index fell 0.4 percentage points from the previous month.
The agency data showed that the prices of the group of vegetables retreated on an annual basis in January, “by 13.8 percent, as a result of a 45 percent drop in potato prices and 26.6 percent in tomatoes.”
“The inflation figures for January were lower than expected for the second month in a row,” said Radwa Al-Swaify of the Pharos Investment Bank.
Last Thursday, the Central Bank of Egypt kept the main interest rates unchanged, saying that inflation is below the target, and that major indicators show that the economy recovered in the last quarter of 2020.
The poverty rate in Egypt decreased to 29.7 percent in the 2019-2020 fiscal year from 32.5 percent in 2017-2018, and the average annual net income for a family nationwide rose 14.4 percent to 69.1 thousand pounds in 2019-2020 from 60.4 thousand pounds in 2017-2018 according to For government data.
Later in the day, the Central Bank of Egypt said that the core inflation rate fell to 3.637 percent in January from 3.803 percent in December.
The calculation of core inflation does not include the prices of highly volatile commodities such as food.