Egypt inflation at slowest in three years

Egyptian inflation eased unexpectedly to its lowest rate in more than three years, with some analysts predicting a greater chance of the central bank cutting interest rates in the coming months.

Consumer prices in urban parts of Egypt rose by an annual 9.4 percent in June, compared with 14.1 percent in May, the state-run statistics agency, CAPMAS, said Wednesday. On a monthly basis, food prices declined 2.2 percent. Although the extent of the deceleration was a surprise to many economists, concerns about the potential inflationary impact of fuel subsidy cuts enacted earlier in the month could give the central bank pause before it can resume an easing cycle.