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Ahram Online: Egypt's rising inflation expected to go down in April

Egypt's CAPMAS announced that the annual headline inflation rose to 29.6 percent in January from 24.3 percent in the previous month.
14.02.17 | Interesting article at Ahram Online

Inflation is expected to ease in Egypt as of April after peaking in the first quarter of 2016/17, Egypt’s finance minister Amr El-Garhy said in a televised interview with Bloomberg on Monday.

On Saturday, Egypt's state statistics body CAPMAS announced that the annual headline inflation rose to 29.6 percent in January from 24.3 percent in the previous month and from 10.7 percent in January 2016, hitting its highest level in at least a decade after the country freely floated its currency against the dollar in November.

According to El-Garhy, the high inflation was expected due to the devaluation of the local currency and the economic reforms, “but after [March], we believe [inflation] will start improving, because it is all resulting from high supply prices rather than being demand-driven inflation,” El-Garhy said.

In November, the CBE floated the pound against the dollar and raised key interest rates as part of a set of reforms aiming to revive the country's flagging economy.

In July 2014, Egypt embarked on a fiscal reform programme to curb a growing state budget deficit — now 12.2 percent of the GDP — by cutting subsidies and introducing new taxes, including the value -added tax.