Egypt inflation, at five-year high, seen quickening in December

Egypt's headline inflation is expected to accelerate further after reaching a five-year high in November, a Reuters poll showed on Monday, as an October currency devaluation continues to reverberate through the economy.

The median forecast of 15 analysts showed annual inflation at 20.50% in December, up from 18.7% in November, which was the highest since December 2017.

"This is primarily due to pass-through effects from the pound's depreciation at the end of October, as well as further weakening of the currency in the parallel market through December," Goldman Sachs said in a note.

The central bank allowed the Egyptian pound to depreciate by about 14.5% on Oct. 27 and let its value continue weakening slowly and incrementally in November and December.

Five analysts also forecast that core inflation would climb to 23.6% from 21.5% in November.

The steady increase in inflation would put pressure on the central bank's Monetary Policy Committee to raise interest rates when it next meets on Feb. 2.