CBE: Inflation Rate Drops On Retreat In Gas Pipes, Food Products Prices

The Central Bank of Egypt (CBE) attributed the retreat in general inflation rate by 0.24% last May, compared to a rise 0.98% in April to the decline in food prices such as chicken, fish and rice in addition to the fall in prices of gas pipes. Additionally, the prices of vegetables and fruits rose. The core inflation rate retreated to 0.52% in May, compared to 0.56% in April. Accordingly, annual inflation rate declined to 7.22% in May, compared to 8.36% in April.

CBE latest report showed the prices of vegetables and fruits increased for the fourth successive month by 1.7% and 5.39% respectively. Poultry prices fell by 5.06% in May, after an increase of 3.56% in April.

Fish prices dropped by 3.61% in May, after an all time monthly increase in April since February 2004. Eggs prices dropped to 2.79%. Processed foods including processed vegetables and rice were down by 4.94% in May after being stabilized in April.

State-determined commodity prices registered a decline in May that contributed by 0.11 percentage points in the general monthly inflation rate due to a 17.62% decline in the prices of gas pipes in May. Accordingly, cumulative increase in prices of gas pipes since January 2011 registered 110.4%.