{"id":572107,"date":"2020-06-11T04:14:18","date_gmt":"2020-06-11T04:14:18","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/06\/11\/egypts-inflation-decelerated-in-may-to-4-7-below-expectations\/"},"modified":"2020-06-11T04:14:18","modified_gmt":"2020-06-11T04:14:18","slug":"egypts-inflation-decelerated-in-may-to-4-7-below-expectations","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/06\/11\/egypts-inflation-decelerated-in-may-to-4-7-below-expectations\/","title":{"rendered":"Egypt\u2019s inflation decelerated in May to 4.7%, below expectations"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a> <strong>We caught a break: I<\/strong><strong>nfla<\/strong><strong>tion cools to six-month low: <\/strong>Annual urban inflation in May slowed to its lowest level since <a href=\"https:\/\/enterprise.press\/stories\/2019\/12\/11\/inflation-rises-for-the-first-time-in-six-months-in-november-8270\/\">November<\/a>, dropping to 4.7% from <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a53e67cb-ab77-417d-a85e-d21ff4469016\">5.9% in April<\/a>, according to data from state statistics agency <a href=\"https:\/\/www.capmas.gov.eg\/Pages\/ShowHmeNewsPDF.aspx?page_id=\/Admin\/News\/PressRelease\/202061082451_05-2020.pdf&Type=News\">Capmas<\/a>.<\/p>\n<p><strong>Food and beverage prices continue to be the main drivers:<\/strong> Food prices fell 0.7% on an annual basis during the month \u2014 in a reversal to the 4.4% spike in April \u2014 and 0.4% on a monthly basis.<\/p>\n<p><strong>Core inflation falls:<\/strong> Annual core inflation fell to 1.5% in May from 2.5% in April, while monthly core prices fell to 0.3% from 1% the month before, according to figures released by the <a href=\"https:\/\/ent.news\/2020\/6\/CPI_press-release_May-2020-1.pdf\">Central Bank of Egypt (pdf)<\/a>.<\/p>\n<p><strong>Figures came in lower than expected, paving the way for <9% annual inflation:<\/strong> \u201cThe May inflation figures are lower than expected because of the drop in food and beverage prices after Ramadan,\u201d Radwa El Swaify, head of research at Pharos Investment Bank, told Enterprise. \u201cWe expect June figures to rise to 6% an annual basis, drop to 5.5% over July and August, and reach 6.5% for September and October, and 7-7.5% for November and December, to the end the year below the CBE\u2019s 9% target.\u201d Capital Economics also said in a <a href=\"https:\/\/ent.news\/2020\/6\/Capital-Economics-Egypt-Consumer-Prices-May-2020.pdf\">statement (pdf)<\/a> that they expect the headline rate to fall within the CBE\u2019s target range, even as the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ef0136fa-9974-4a58-851d-82277c8e2972\">EGP weakening<\/a> against the greenback and the recent announcement of <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/78b3ac0c-8571-47a4-802c-abf1b65a5044\">electricity price hikes<\/a> are likely to drive up inflation.<\/p>\n<p><strong>Effect of higher electricity prices, FX rate might still be muted:<\/strong> Prime Holding Senior Economist Mona Bedeir doesn\u2019t expect the electricity price hikes and FX rate to have much of an effect on 2H2020 inflation readings, however. Bedeir notes the currency had seen some appreciation earlier in the year that will help offset the recent dip, and commercial and industrial consumers were exempt from the electricity price hikes, \u201cwhich will limit the probability of a second-round effect on final prices.\u201d<\/p>\n<p><strong>Leeway for more rate cuts? <\/strong>Analysts are divided on what this means as the central bank meets a week from today to discuss interest rates. Pharos El Swaify sees rates being left on hold as does Naeem\u2019s Allen Sandeep, who expects \u201cthe status quo to continue\u201d despite the CBE now having a little more theoretical room to cut rates. Capital Economics, however, said that \u201cwith policymakers\u2019 focus shifting away from supporting the EGP to boosting the economy, we expect interest rate cuts to resume in the coming months.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We caught a break: Inflation cools to six-month low: Annual urban inflation in May slowed to its lowest level since November, dropping to 4.7% from 5.9% in April, according to data from state statistics agency Capmas. Food and beverage prices continue to be the main drivers: Food prices fell 0.7% on an annual basis during [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":572108,"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":[8572],"tags":[5096,330,72,182,3183,5278,3073,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-572107","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round","tag-allen-sandeep","tag-capmas","tag-enterpriseam","tag-inflation","tag-naeem-holding","tag-pharos-investment-bank","tag-radwa-el-swaify","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"8e44c93f-4611-4914-bf37-a9990128b4df","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2020\/6\/133.jpg","photo_position":"above","related_issue":[572102],"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>Egypt\u2019s inflation decelerated in May to 4.7%, below expectations - 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\/2020\/06\/11\/egypts-inflation-decelerated-in-may-to-4-7-below-expectations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Egypt\u2019s inflation decelerated in May to 4.7%, below expectations\" \/>\n<meta property=\"og:description\" content=\"We caught a break: Inflation cools to six-month low: Annual urban inflation in May slowed to its lowest level since November, dropping to 4.7% from 5.9% in April, according to data from state statistics agency Capmas. 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Inflation came in at 1.6% on a monthly basis compared to 0.4% during the same month last year, and 0.6% in March. This uptick comes\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/5\/100.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":597988,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/05\/12\/egypts-annual-inflation-falls-to-13\/","url_meta":{"origin":572107,"position":1},"title":"Egypt\u2019s annual inflation falls to 13%","author":"enterpriseam admin","date":"12 May 2019","format":false,"excerpt":"Inflation unexpectedly cooled in April: The annual headline rate of inflation fell to 13.0% in April from 14.2% in March, the lowest rate since the start of the year, according to central bank figures (pdf). Data shows that month-on-month inflation fell to 0.5% last month from 0.8% in March, while\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/5\/3313.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":572844,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/12\/egypts-annual-urban-inflation-ticks-up-in-june-to-5-6\/","url_meta":{"origin":572107,"position":2},"title":"Egypt\u2019s annual urban inflation ticks up in June to 5.6%","author":"enterpriseam admin","date":"12 July 2020","format":false,"excerpt":"Annual urban inflation accelerated to 5.6% in June, edging up from asix-monthlow of 4.7% in May, according to central bank figures (pdf). Monthly figures remained subdued, with June\u2019s figure coming in at 0.1%, compared to -0.8% during the same month last year, and to 0% in May, the central bank\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/7\/74.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":565438,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/08\/inflation-uptick-as-ramadan-approaches\/","url_meta":{"origin":572107,"position":3},"title":"Inflation uptick as Ramadan approaches","author":"enterpriseam admin","date":"8 April 2021","format":false,"excerpt":"Annual headline inflation accelerated slightly to 4.8% in March, up from 4.6% in February, state statistics bureau Capmas\u2019 latest reading (pdf) showed. Annual urban inflation stood steady to 4.5% in March. On a monthly basis, headline inflation rose 0.6% m-o-m, compared to a 0.2% monthly rise in February. This is\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":591610,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/11\/inflation-rises-for-the-first-time-in-six-months-in-november\/","url_meta":{"origin":572107,"position":4},"title":"Inflation rises for the first time in six months in November","author":"enterpriseam admin","date":"11 December 2019","format":false,"excerpt":"Inflation rises for the first time in six months in November: Annual urban inflation rose slightly to 3.6% in November from 3.1% in October, ending a six-month spell of disinflation, according to official data published yesterday by Capmas (pdf). Prices fell 0.3% on a monthly basis compared to 1% growth\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/12\/1406.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":572107,"position":5},"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":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/572107","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=572107"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/572107\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/572102"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/572108"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=572107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=572107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=572107"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=572107"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=572107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}