{"id":566303,"date":"2021-06-10T13:29:15","date_gmt":"2021-06-10T13:29:15","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/10\/annual-headline-inflation-rises-to-4-8-but-slowed-m-o-m-in-may\/"},"modified":"2021-06-10T13:29:15","modified_gmt":"2021-06-10T13:29:15","slug":"annual-headline-inflation-rises-to-4-8-but-slowed-m-o-m-in-may","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/10\/annual-headline-inflation-rises-to-4-8-but-slowed-m-o-m-in-may\/","title":{"rendered":"Annual headline inflation rises to 4.8%, but slowed m-o-m in May"},"content":{"rendered":"<p><a id=\"tldr-story-01\" class=\"content-anchor\"><\/a><strong> Inflation inched up in May, thanks to a spike in food prices, an unfavorable base effect, <\/strong><strong>and skyrocketing global commodities.<\/strong> Annual headline rate accelerated to 4.8% in May from <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/0d82773c-16b8-4e19-956b-28cf55f425a6\">4.1% in April<\/a>, while the overall rate in <a href=\"https:\/\/ent.news\/2021\/6\/202161085934_Inflation-05-2021.pdf\">urban and rural areas (pdf)<\/a> rose to 4.9% last month from 4.4% a month earlier, figures released today by state statistics bureau Capmas showed. May\u2019s inflation reading was the highest this year, with the acceleration being the quickest since it hit 5.4% <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d0d5a197-b4a0-48fd-9884-ef50416da06e\">in December 2020<\/a>.<\/p>\n<p><strong>But inflation slowed down m-o-m:<\/strong> Urban prices rose 0.7% during the month, compared to an increase of 0.9% during April.<\/p>\n<p><strong>Food prices were up both y-o-y and on a monthly basis: <\/strong>A sub-gauge measuring food prices in urban areas was up 1.7% over last year and 1.5% over April. Other goods and services including education, health, and utilities also rose nationwide on an annual basis but remained largely unchanged from April.<\/p>\n<p><strong>Higher inflation didn\u2019t come as a surprise: <\/strong>\u201cThe increase was in line with expectations, especially in light of rising fruit and vegetable prices and the base effect, which confirms that prices will continue to increase in the coming months,\u201d Pharos\u2019 head of research Radwa El Swaify said. We\u2019re starting to feel the pinch of the post-covid worldwide commodities boom, which led to a spike in inputs and will prompt companies to raise consumer prices, she added. HC Securities\u2019 Monette Doss, EFG Hermes\u2019 Mohamed Abou Basha, and Prime Holding\u2019s Mona Bedier also said May was in keeping with forecasts in the neighborhood of 5%.<\/p>\n<p><strong>Inflationary pressures have been muted since the start of the year, <\/strong>shrugging off the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2fb13174-3377-49ef-8300-480e0abee206\">global commodities boom<\/a> that began late last year and hit everything from food to energy to key metals, but took a while to filter through here at home. Annual urban headline inflation unexpectedly slowed to <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/0d82773c-16b8-4e19-956b-28cf55f425a6\">4.1% in April<\/a>, after having held steady at <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/91d91bf8-2519-46d6-a33e-b0495cc892c0\">4.5% in March<\/a> from <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2ad47058-a1df-4f79-a48e-1b39c17beb79\">February<\/a> and even dropped in January <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d2132ef4-bbe3-4fbf-adbe-0033fb050730\">to its lowest level since September 2020<\/a>.<\/p>\n<p><strong>Analysts see this trend already reversing: <\/strong>Following the increase in May, urban inflation will gradually rise to 5.5% in September, primarily due to the base effect, higher raw material prices, and continued pressure on fruit and vegetable prices during the summer season, El Swaify says. While inflation remains low, most emerging markets expect more pressure on headline rates moving forward, which is likely to lead to a figure of up to 6% in Egypt by the end of the year. Doss meanwhile expects inflation to average 6.3% throughout the rest of 2021, while Abu Basha is penciling in a rate of 5.5-6% come December.<\/p>\n<p><strong>But the world is expected to foot the bill of all-time high food prices this year,<\/strong> with the cost of staple imports set to rise 17% to USD 1.72 tn, primarily due to soaring prices of grains, vegetable oils and oil seeds, the UN\u2019s Food and Agriculture Organization <a href=\"http:\/\/www.fao.org\/news\/story\/en\/item\/1410675\/icode\/\">said in a report today<\/a>. This comes on the heels of a year-long rally in global food prices and rising freight costs, and is expected to hit import-oriented countries (which include Egypt) the most. <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-06-10\/world-food-import-bill-set-to-reach-record-amid-soaring-costs?sref=mmeFTDW1\">Bloomberg<\/a> has more.<\/p>\n<p><strong>The CBE\u2019s Monetary Policy Committee is due to meet next Thursday.<\/strong> Policymakers left rates on hold for the fourth consecutive month <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/6c5d1ef9-6305-4119-a57e-4a6f45c6f2d5\">in April<\/a>, as they looked to keep Egypt\u2019s carry trade among the world\u2019s most attractive \u2014 and also anticipated heightened inflation. Many analysts believe this cautious stance is unlikely to change soon. <strong>We\u2019ll be out with our customary interest rate poll ahead of the meeting.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inflation inched up in May, thanks to a spike in food prices, an unfavorable base effect, and skyrocketing global commodities. Annual headline rate accelerated to 4.8% in May from 4.1% in April, while the overall rate in urban and rural areas (pdf) rose to 4.9% last month from 4.4% a month earlier, figures released today [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":566304,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10034],"tags":[330,271,104,633,182],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-566303","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round-economy","tag-capmas","tag-central-bank-of-egypt","tag-economy","tag-enterprisepm","tag-inflation","wpautop","entry"],"acf":{"mongo_id":"a19da710-1330-415c-8993-290f63133dcb","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/6\/459.jpg","photo_position":"above","related_issue":[566299],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Annual headline inflation rises to 4.8%, but slowed m-o-m in May - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/06\/10\/annual-headline-inflation-rises-to-4-8-but-slowed-m-o-m-in-may\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Annual headline inflation rises to 4.8%, but slowed m-o-m in May\" \/>\n<meta property=\"og:description\" content=\"Inflation inched up in May, thanks to a spike in food prices, an unfavorable base effect, and skyrocketing global commodities. 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Annual urban inflation rose to 13.5% last month from 13.1% in Aprilas rising global commodity prices and the EGP devaluation pushed consumer prices upwards for a sixth consecutive\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/6\/223.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":542673,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/01\/11\/urban-inflation-rises-to-5-9-in-december-below-expectations\/","url_meta":{"origin":566303,"position":1},"title":"Urban inflation rises to 5.9% in December, below expectations","author":"enterpriseam admin","date":"11 January 2022","format":false,"excerpt":"Annual urban inflation rose to 5.9% in December from 5.6% in November, ending a two-month downward trend despite a slowdown in food price inflation, according to figures released yesterday by statistics agency Capmas. On a monthly basis, consumer prices fell for the first time in 11 months, dipping 0.1% due\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/1\/118.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":564507,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/02\/10\/headline-inflation-slowed-last-month-does-it-make-a-rate-cut-more-likely\/","url_meta":{"origin":566303,"position":2},"title":"Headline inflation slowed last month \u2014 does it make a rate cut more likely?","author":"enterpriseam admin","date":"10 February 2021","format":false,"excerpt":"Annual headline inflation in January slowed to its lowest level since September 2020. Urban headline inflation dropped for the second consecutive month to 4.3% from 5.4% in December 2020, and closing in on a 3.7% record low reading last September, figures from state statistics agency Capmas (pdf) and the central\u2026","rel":"","context":"In &quot;SPEED ROUND: ECONOMY&quot;","block_context":{"text":"SPEED ROUND: ECONOMY","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/2\/429.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":553861,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/12\/urban-inflation-dips-to-lowest-level-since-july\/","url_meta":{"origin":566303,"position":3},"title":"Urban inflation dips to lowest level since July","author":"enterpriseam admin","date":"12 December 2021","format":false,"excerpt":"Annual urban inflation slowed for the second month running in November as pressure on food prices continued to ease, according to official figures released on Thursday. The headline rate fell to 5.6% last month from 6.3% in October, the lowest rate since July and within the lower end of the\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/291.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":565871,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/05\/10\/inflation-slows-unexpectedly-in-april\/","url_meta":{"origin":566303,"position":4},"title":"Inflation slows unexpectedly in April","author":"enterpriseam admin","date":"10 May 2021","format":false,"excerpt":"Annual urban headline inflation slowed in April against expectations, shrugging off rising global commodity prices thanks to a favorable base effect that offset a rise in monthly prices. Figures released today by state statistics bureau Capmas showed urban inflation fell to 4.1% in April from 4.5% in March, while the\u2026","rel":"","context":"In &quot;SPEED ROUND: ECONOMY&quot;","block_context":{"text":"SPEED ROUND: ECONOMY","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":566708,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/08\/monthly-prices-in-urban-egypt-hold-steady-keeping-inflation-in-check\/","url_meta":{"origin":566303,"position":5},"title":"Monthly prices in urban Egypt hold steady, keeping inflation in check","author":"enterpriseam admin","date":"8 July 2021","format":false,"excerpt":"Annual urban inflation inched up slightly in June, at a pace slower than everyone had expected, thanks to a favorable base effect and a slowdown in the growth of monthly food prices. Figures released today by state statistics bureau Capmas showed the headline rate accelerated to 4.9% at the end\u2026","rel":"","context":"In &quot;SPEED ROUND: ECONOMY&quot;","block_context":{"text":"SPEED ROUND: ECONOMY","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/7\/362.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/566303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=566303"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/566303\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/afternoon\/566299"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/566304"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=566303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=566303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=566303"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=566303"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=566303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}