Egypt cuts inflation target to 9% for 2019

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Egypt’s central bank has lowered its annual inflation target to 9 percent in 2019, assistant sub governor for banking reform sector Hany Genena said Wednesday.

The central bank is seeking a monthly inflation rate of 1 percent in the coming few months, until reaching an annual inflation of 13 percent in the fourth quarter of 2018, Genena said.

Genena made his remarks on the sidelines of the Alliance for Financial Inclusion’s (AFI) 9th Global Policy Forum, which takes place in Sharm El Sheikh from 13-15 September.

Co-hosted by the Central Bank of Egypt, the AFI organises its 9th Global Policy Forum (GPF) to be the showcase of the unique financial inclusion initiatives undertaken by members in the Arab region.

Egypt’s key inflation rates soared to multi-decade highs in June on the back of energy subsidy cuts agreed with the International Monetary Fund as a condition of its $12 billion three-year loan.

Annual urban inflation for July hit a critical high of 33.0 percent from 29.8 percent in June, the highest since June 1986, and the second highest since Reuters data began in 1958.