Egypt inflation slows to lowest level since November as food costs fall

Consumer prices in urban parts of Egypt grew at the slowest annual level since November as food costs fell, according to data from the state-run statistics agency, CAPMAS.

The annual rate decelerated to 4.2 percent from a year earlier in July, compared with June’s 5.6 percent, defying some analyst expectations for a moderate acceleration. Food and beverage prices, which comprise the largest single component in the inflation basket, fell 1.5 percent in July.

Monthly inflation sped up in July, rising to 0.4 percent from 0.1 percent the previous month.

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The annual rate remains below the lower bound of the central bank’s target range for the end of the year, set at 9 percent plus or minus 3 percentage points. Still, most economists surveyed by Bloomberg predict the central bank will leave interest rates on hold when its Monetary Policy Committee meets on August 13.

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