Egypt inflation seen having risen to 12.0% in October

Egypt's headline inflation is expected to have risen to an annual 12.0% in October after an increase in fuel prices and a new law allowing landlords to raise rents, a Reuters poll found.

The median forecast of 14 analysts polled by Reuters was for annual headline urban consumer inflation to have risen, from 11.7% in September. The higher inflation would end a four-month-long downward trend.

Four analysts also provided predictions for core inflation, which omits volatile items such as certain food and fuel products. They predicted it would drop to a median 11.0% from 11.3% in September. The polling data was collected over November 3-6.

Sri Virinchi Kadiyala of Abu Dhabi's ADCB, who forecast that inflation would accelerate to 12.5%, said inflation would be driven higher by rising prices for food, fuel prices, housing and utilities.

The government on October 17 increased the price of a wide range of fuel products by nearly 13%.

A new law letting landlords raise monthly rents took force in early August, applicable with the first subsequent rent payment. This means the first increases would have been reflected in September inflation figures.