[ad_1]
Recent official data has revealed a record drop in annual inflation rates in Egypt over the past year.
The Egyptian Central Agency for Public Mobilization and Statistics in Egypt reported that the general inflation rate for the whole Republic for the year 2020 was around 5.1%, compared to around 8.5% in 2019.
He explained that the annual inflation rate for the republic as a whole registered around 6% for the month of December 2020, compared to around 6.8% for the same month of the previous year.
He specifies that the general consumer price index for the whole of the Republic reached the level of 110.6 points for December 2020, recording a decrease of 0.5% compared to November 2020.
The statistical agency attributed this drop to a fall in the prices of the vegetable group by 10.1%, the fish and seafood group by 0.6%, the meat and poultry group by 0.2%, milk, cheese and eggs by 0.1% and the ready-to-wear group by 0.6%.
He pointed out that this happened despite the increase in the prices of the fruit group by 3.8%, the oils and fats group by 0.5%, cereals and bread by 0.2%, transport services by 0.7% and the calculated rent of housing by 0.1%.
In turn, the Central Bank of Egypt said today, Sunday, that the core inflation rate fell to 3.803% in December from 4,201% in November.
Fruit prices rise 3.8% in December
The Central Bank of Egypt decided at the meeting of the monetary policy committee at the end of December to keep interest rates unchanged. The Egyptian Central Bank said the rise in the general inflation rate last November reflected a temporary supply shock to the prices of some vegetables, and a slight increase in the annual core inflation rate to 4.0%. in November, against 3.9% in October, ie This indicates continued control of inflationary pressures.
The Central Bank of Egypt predicted that the average general inflation rate would register single rates below the 6% level in the last quarter of this year, depending on how much tomato prices fell after the shock ended, in addition to the variation of other elements.
He said he proactively took a series of measures, starting with the meeting of the Emergency Monetary Policy Committee in mid-March, where it was decided to cut rates. base return of 300 basis points on an exceptional basis, which helps to support economic activity in all its sectors, in particular the public and private business sectors and the Family sector.
Inflation target
The Central Bank of Egypt has set the average target inflation rate until the last quarter of 2022 at 7% (± 2%), compared to 9% (± 3%) on average until the end of the fourth quarter of 2020.
He highlighted its continued use of monetary policy tools to control inflation expectations and contain inflationary pressures on the demand side, as well as the side effects of supply shocks, which can lead to an inflation gap. compared to the targeted rates. Highlighting the possibility of inflation deviating from target rates due to factors beyond the influence of monetary policy.
He said annual inflation rates are estimated to be affected by the negative impact of the base period in 2021, but will continue to record rates close to the middle of the target rate range of 7% in 2022.
Source link
