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Egypt’s annual urban consumer inflation rises to 14.4% in June

Rise came after country raised fuel, electricity and taxi fares in an effort to meet the terms of an IMF $12b loan from late 2016

Gulf News

Cairo: Egypt’s annual urban consumer inflation surged to 14.4 per cent in June from 11.4 per cent in May, the official statistics agency CAPMAS said on Tuesday, after 10 months of steady decline. The increase, which took economists by surprise, came after Egypt raised fuel, electricity and taxi fares last month.

The increases were part of efforts to meet the terms of a $12 billion (Dh44 billion) International Monetary Fund (IMF) loan programme from late 2016 that included cuts in energy subsidies and tax increases.

The government in May raised metro fares in a move that had increased public discontent, sparking a brief bout of protests. Prices soared in particular after the import-dependent country floated its currency, the pound, in November 2016, reaching a record high of 33 per cent in July 2017. Inflation has eased since then, slowing its lowest level in almost two years in May.

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