Egypt’s central bank gets reprieve as inflation slows

Bloomberg

Egyptian consumer prices rose at their slowest monthly rate since May, offering fresh evidence that the impact of fuel price hikes was abating and giving the central bank room to shift its focus from inflation to investments.
Monthly inflation in August eased to 1.8 percent compared to 2.4 percent the previous month, according to data reported by CAPMAS, the state-run statistics agency, its slowest pace since the government began enacting another round of subsidy cuts and rate hikes. The annual rate accelerated to 14.2 percent compared to 13.5 percent in July.
Slowing of the monthly rate “signals that inflation is not a concern any more,” according to Radwa El-Swaify, head of research at Pharos Holding in Cairo. “We’re comfortably on track to achieve the central bank’s target by the end of the year.”
Core inflation, which strips out volatile and regulated items, accelerated slightly to 8.83 percent in August compared to 8.54 percent the previous month. Month-on-month, however, the rate was 0.58 percent, its lowest level since February.
Curbing inflation, which had rocketed to over 34 percent following the November 2016 decision to float the pound, was a key priority for the central bank.