Inflation in Egypt spikes in June

cairo — Egypt’s annual inflation rate increased to 13.8 per cent in June, the first time it has jumped in 11 months following a new round of austerity measures designed to overhaul the country’s economy, the official statistics agency said on Tuesday.

The figure, announced by the Central Agency for Mobilisation and Statistics (CAMS), covers the period from July 1, 2017, to June 30, 2018.

The June rate compares to 11.5 per cent in May, covering the period of June 1, 2017, to May 31, 2018.

The agency attributed the increase to a hike in the price of some commodities, including vegetables (four per cent) and cereals and bread (two per cent).

Transportation fares increased by 27.8 per cent. Housing, water, electricity, gas and other fuel prices hiked by 8.1 per cent in June, according to CAMS.

Inflation peaked last summer, hovering around 30 per cent after the government cut fuel and electricity subsidies as part of broader economic reforms to meet demands by the International Monetary Fund for a $12 billion bailout loan. Egypt secured the loan in 2016.

In June 2017, the annual inflation rate was 30.9 per cent, according to the statistics agency. Since then, inflation figures showed a steady monthly decline to reach 11.5 in May, the lowest level in around two years.

June figures came in the wake of recent steep price hikes for fuel, drinking water and electricity was introduced by the government in the recent weeks.