CAIRO: Egypt’s inflation accelerated to 30 per cent in February, one of the highest levels across emerging markets, but the data carried signs that the aftershocks of the decision to abandon currency controls may be fading.
Consumer prices in urban parts of the most populous Arab country climbed to an annual rate of 30.2 per cent from 28.1 per cent in January, according to data released by the state-run statistics agency on Thursday. The cost of food and beverages rose 40.5 per cent. The pace of monthly overall price gains, however, eased to 2.6 per cent from 4.1 per cent in January.
Prices have soared after decisions on Nov. 3 to float the pound and raise fuel prices, steps that were crucial to clinch a $12 billion (Dh44 billion) International Monetary Fund loan accord. Finance Minister Amr El-Garhy last month said he expected inflation to peak at the end of the first quarter.
The annual rate “will remain very high until November” because it’s calculated against a lower base, said Hany Farahat, senior economist at CI Capital, a Cairo-based investment bank. The monthly figure could mean that “the severe price shocks following the November measures are easing,” he said.
“This may mark the beginning of stabilisation in prices,” he said.
The central bank is expected to release the core inflation figures later in the day. The measure strips out volatile items.
