Headline inflation at highest level since EGP float

Headline inflation hit 29.6% in January, upfrom 24.3% in December, Ahram Online reports. The number is the highest level since the EGP float and was caused by price hikes in basic goods, the state statistics agency CAPMAS says. Food and beverages prices rocketed 38.6% y-o-y in January 2017. Urban inflation increased to 28.1% in January, from 23.3% in December, Reuters reported. Pharos’ Radwa El Swaify tells Al Borsa that it will get worse before it gets better. She expects inflation to drop by early 2H17 to around 25% and sees it easing to 14% by year’s end. This will be contingent on oil prices not rising in July and on the government holding the course on plans to cut energy subsidies.