Egypt's annual core, urban inflation drop in June

Egypt's annual urban consumer inflation and core inflation dropped in June after rising last month, with analysts saying the fall reflected slower growth in food prices.

Urban consumer inflation dropped to 11.4 percent from 13.1 percent in May, official statistics agency CAPMAS said on Thursday, but has still not returned to levels prevailing before subsidies were cut last summer.

Core annual inflation, which excludes volatile items like fruit and vegetables, dropped slightly to 8.07 percent from 8.14 percent the previous month, the central bank said.

Inflation accelerated in Egypt after the government slashed subsidies in July 2014, pushing up fuel prices as much as 78 percent. Price pressures eased at the end of last year but then picked back up.