CBE: monthly inflation rate increases as a result of food materials prices increases

Central Bank of Egypt (CBE) said that the monthly increase in inflation rate in January 2012, estimated to be 0.15%, as a result of the increased prices of food materials by 1.02%, adding 0.34 percentage points to the monthly rate of general inflation. CBE affirmed that the decreased prices of gas cylinders, vegetables and fruits prevented more raising in the inflation rate.

The prices of gas cylinders fell by 23.07%, compared with 85.65% increase in December. The prices of fruits declined by 1.04% in January, as a monthly decrease for the eighth time respectively, recording a decrease less than the average monthly rate in 2011, which is 0.30. Fresh vegetables prices declined by 0.73% in January for the second month respectively, recording a decrease less than the average monthly increase in 2011, which is  3.84%.

CBE’s report showed that the prices of poultry increased by 4.98% for the same period, compared with a 1.69% increase in December and the prices of seafood increased by  1.45%, compared with a  1.41% increase in December.

Annual inflation rate declined by 8.60%, compared with 9.55% in December, while the annual rate of core inflation fell by 6.86% in January, compared with 7.07% in December.

CBE’s monthly rate of core inflation recorded 0.55% in January, compared with 0.21% in December, as a result of the slight increase of consumer goods’ prices and the unchanged prices of paid services.

Amwal Alghad