Egypt inflation seen easing to 24.2% in December: Reuters ballot

CAIRO (Reuters) – Egyptian inflation is predicted to have eased to 24.2% in December as meals costs continued to chill, based on a ballot launched on Wednesday.

The median forecast of 13 analysts polled by Reuters was for annual city shopper inflation to have edged right down to 24.2% from 25.5% in November. The info was collected from Jan. 6 to Jan. 8.

“We count on December inflation to decelerate to 24.1% year-on-year and 0.2% month-on-month, on comparatively decrease to secure vegetable and fruit costs as a result of seasonality,” mentioned Heba Monir of HC Securities.

Inflation picked up in August, September and October, however declined in November and is properly beneath an all-time peak of 38% hit in September 2023.

Inflation has been fuelled partially by speedy development within the cash provide. M2 cash provide expanded by 29.06% within the yr to end-November, barely beneath an all-time excessive of 29.59% within the yr to end-September, central financial institution knowledge confirmed.

Egypt signed an $8 billion monetary assist bundle with the Worldwide Financial Fund in March designed to assist it slim its finances deficit and undertake a much less inflationary financial coverage. Nonetheless, the bundle requires the federal government to chop subsidies on some home gadgets, pushing up their worth.

The federal government statistics company CAPMAS is because of launch inflation figures on Thursday morning.

(Polling by Veronica Khongwir; Writing by Patrick Werr; Modifying by Kirsten Donovan)