CBE: Annual Inflation Shrinks on Lower Vegetables, Food Commodities Prices

In its latest report on Tuesday, the Central Bank of Egypt (CBE) stated that the shrink in the inflation’s annual rate at 9.09% in November, opposed to 11.84 % in October, goes back to the decline in the prices of fresh vegetables and other food commodities.

According to CBE’s report, the monthly core inflation recorded a negative rate at 0.15 % in November 2014, from 0.55%  in October causing a decrease in the annual rate of core inflation to 7.81 % in November, compared to 8.47 % in October. While consumer goods’ prices recorded an increase, paid-services and other services steadied.

Fresh vegetables’ prices recorded a fall by 14.63 % in November with a negative rate in the monthly percentage of general inflation; while fresh fruits’ prices registered a mild decrease by 0.44%.

On other side, poultry prices dropped by 3.64 % in November, with a negative percentage of 0.17 % in the monthly rate of general inflation. In contrary, red meet prices recorded a raise by 1.25 %.

Backed by an increase in clothes’ prices, the consumer goods’ prices reported a raise of 1.0 % in November, with 0.11 % in the monthly rate of general inflation.

Most of the monthly change in core inflation goes back to the fall in the prices of the above-mentioned goods to contribute a negative rate at 0.31 % to the monthly rate of the general inflation.